Via Forbes.com:
“Investment firms Levi & Korsinsky, Glancy Prongay & Murray, Kessler Topaz Meltzer & Check, and Ryan Merholz & Melvyn Klein have alleged wrongdoings in class action suits that name Vince McMahon, Paul (Triple H) Levesque, Stephanie McMahon, and several other major executives at WWE, including former WWE Co-President George Barrios.
The Levi & Korsinky lawsuit alleges that WWE “deceived the investing public” in numerous reports that were issued. In a press release by the firm, they claim that WWE “made materially false and/or misleading statements and/or failed to disclose 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.”
Via legal filing:
“On April 25, 2019, WWE reported that for first quarter 2019, revenue declined year-over-year, notably in the live events and consumer products segments. Though the Company attributed the decline to the absence of certain “Super Stars,” several analysts connected the results to difficulties securing a media rights deal for the Middle East and North Africa (“MENA”) region with the Kingdom of Saudi Arabia.
On this news, the Company’s share price fell $13.12 per share, or over 13%, to close at $85.38 per share on April 25, 2019, thereby injuring investors.
Then, on October 31, 2019, in connection with the Company’s third quarter 2019 financial results, WWE lowered its fiscal 2019 adjusted OIBDA guidance to a range of $180 million to $190 million, stating that “no assurances” could be made that a media rights deal for the MENA region would ever be completed.”
So far no word yet from the WWE.
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