Malcolm, considering the fact that it involves such a large volume of product, approximately $40+ Million worth of merchandise, I seriously doubt that Warner Brothers would have left holes in the contract that they had IWMB sign. IWMB signed the contract with Warner Brothers to destroy those one million DVD sets from Warner Brothers.
IWMB then, made the decision to sub-contract that work out to a new company, which then decided to sell that stock to other entities. IWMB would be liable since they signed the contract with Warner Brothers, and technically, is responsible for the theft of that merchandise. The original contract, between Warners and IWMB would likely hold IWMB liable for that merchandise. IWMB would then have to go after that company they sub-contracted that work out to.
It has nothing to do with what their attorney has to say about it.
1. IWMB signed the contract with Warner Brothers
2. IWMB then receives said merchandise to have it destroyed
3. IWMB then contracts that work out a another company for destruction
The problem here is that Warner Brothers may be suing the wrong company and that when this goes to court that the defendant named in the suit, that second company, may very well end up trying to dismiss the lawsuit or attempt to drag IWMB into the lawsuit because they signed the original contract with Warner Brothers. If I was the head of that second company, I would motion for IWMB to be named as co-defendent in the case since both companies are liable.