Law Firm Files Class Action Lawsuit Against WWE For Making False & Misleading Statements
- The following was issued yesterday:
The Law Office of Robbins Arroyo LLP Announces that It Has Filed a Class Action Lawsuit Against World Wrestling Entertainment, Inc.
SAN DIEGO & WEST LAFAYETTE, Ind., July 25, 2014 /PRNewswire/ — Shareholder rights law firm Robbins Arroyo LLP announces that it has filed a federal securities class action lawsuit on July 25, 2014, in the U.S. District Court for the District of Connecticut (the "Court"), on behalf of all persons who purchased or otherwise acquired World Wrestling Entertainment, Inc. ("WWE" or the "Company") WWE -1.82% securities between October 31, 2013 and May 16, 2014, inclusive (the "Class Period"), against the Company and certain of its officers and directors for, among other things, violations of section 10(b) of the U.S. Securities and Exchange Act of 1934 (the "Exchange Act") and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint seeks relief on behalf of the named plaintiffs and all other similarly situated shareholders of WWE during the Class Period. The named plaintiffs are represented by Robbins Arroyo LLP.
WWE Is Accused of Making False and Misleading Statements Concerning the Company's Ability to Double the Value of Its U.S. Television License Agreement
The complaint arises out of false and misleading statements regarding the ability of the Company to transform its earning profile through, among other things, the negotiation of a lucrative long-term television deal. The complaint alleges that, during the Class Period, certain of WWE's officers issued materially false and misleading statements regarding the Company's ability to command a premium fee in upcoming negotiations to renew its television license agreement. Specifically, defendants caused WWE to issue false and misleading statements in public filings, press releases, and conference calls where they publicized their ability to renew their television license agreement at double the value in upcoming negotiations. These statements downplayed the fact that advertisers pay less to reach WWE viewers than traditional sports or other shows on the USA Network and the negative impact on the television license negotiations resulting from the Company's launch of its WWE Network.
WWE's Stock Price Drops on News of the New Television License Agreement Value
On May 15, 2014, after the market closed, the Company issued a press release that it had reached a multi-year deal with NBCUniversal Cable Entertainment increasing the value of the U.S. television license agreement by $57 million, or 50%. Upon this announcement, on May 16, 2014, WWE stock dropped over 43%, from $19.93 to close at $11.27. The omitted and/or misrepresented information is believed to be material to potential WWE shareholders' ability to make an informed decision whether to purchase WWE stock.
If you purchased or otherwise acquired WWE stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than sixty days from July 25, 2014. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact attorney Darnell R. Donahue of Robbins Arroyo LLP at 800-350-6003, via the shareholder information form on our website, or by e-mail at info@robbinsarroyo.com . Any member of the Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent Class member.