WWE is facing another class action lawsuit as the law firm Pomerantz LLP is investigating claims on behalf of WWE investors that WWE and certain officers or directors engaged in securities fraud or unlawful business practices, which led to the company’s drop in stock price and disappointing quarterly financial results.
From Pomerantz LLP:
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of World Wrestling Entertainment, Inc.
NEW YORK, March 25, 2020 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of World Wrestling Entertainment, Inc. (“WWE” or the “Company”) (WWE). Such investors are advised to contact Robert S. Willoughby at rswilloughby @pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether WWE and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On April 25, 2019, WWE disclosed disappointing financial results and fiscal guidance, which several analysts connected to difficulties in the Company’s business relationship with the Kingdom of Saudi Arabia, including a multi-year television distribution rights agreement with the Saudi-controlled Orbit Showcase Network (“OSN”) and a 10-year partnership with the Saudi General Sports Authority to host live events in Saudi Arabia. On this news, WWE’s stock price fell $13.12 per share, or 13.32%, to close at $85.38 per share on April 25, 2019.
Then, on October 31, 2019, in connection with the release of the Company’s third quarter 2019 financial results, WWE revealed significant underperformance across key metrics and revealed that its media rights deal with OSN had been indefinitely delayed. On this news, WWE’s stock price fell $10.40 per share, or 15.65%, to close at $65.04 per share on October 31, 2019. On January 30, 2020, WWE announced the departures of WWE Co-Presidents George A. Barrios and Michelle D. Wilson. On this news, WWE’s stock price fell $13.42 per share, or 21.54%, to close at $48.88 per share on January 31, 2020.
Finally, on February 6, 2020, WWE again disclosed disappointing financial performance, citing to its failure to secure a favorable broadcasting deal with the Saudi government, and revealed that the Saudi media rights deal had been completely excised from the Company’s financial forecasting. On this news, WWE’s stock price fell $4.50 per share, or 9.18%, to close at $44.50 per share on February 6, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See pomerantzlaw.com
Additionally, AccessWire has a shareholder alert release on The Law Officers of Vincent Wong that the law firm is commencing class actions on behalf of shareholders for WWE. The release states that “defendants perpetrated a fraudulent scheme.” You can read the full description below:
SHAREHOLDER ALERT: SSL BYND MGPI: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines
NEW YORK, NY / ACCESSWIRE / March 25, 2020 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies. If you suffered a loss you have until the lead plaintiff deadline to request that the court appoint you as lead plaintiff. There will be no obligation or cost to you.
World Wrestling Entertainment, Inc. (WWE)
If you suffered a loss, contact us at: wongesq.com/pslra-1/world-wrestling-entertainment-inc-loss-su...
Lead Plaintiff Deadline: May 5, 2020
Class Period: February 7, 2019 to February 5, 2020
Allegations against WWE include that: Defendants perpetrated a fraudulent scheme which: (i) deceived the investing public regarding WWE’s business and prospects; (ii) artificially inflated the price of WWE Class A common stock; (iii) permitted certain senior executives of WWE to sell more than $282 million worth of their personally held shares at fraud inflated prices; and (iv) caused the public to purchase WWE Class A common stock at artificially inflated prices.
Paul Szaniawski and Robbins Geller Rudman filed a class action lawsuits against WWE that alleged that WWE made false and misleading claims when it came to its relationship with the Saudi government. WWE is also facing a lawsuit in regards to patent infringement over WWE Network technology.
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