With WWE currently in turmoil over a recent investigation into hush-money payments made by Chairman & CEO Vince McMahon, and an unusual amount of shares of WWE stock moving in the hours before the bombshell Wall Street Journal report, all coming days after a Merrill Lynch advisor raised the price target on WWE stock from $60 to $75, it is valid to ask the question: what about the investors?
According to Business Wire, a law firm in California is asking investors that have accrued losses of $100,000 or more to contact them, as they are investigating claims on behalf of investors for violations of securities laws. The investigation by The Schall Law Firm is looking into whether WWE (referred to as “Company”) “issued false and/or misleading statements and/or failed to disclose information pertinent to investors.”
The release goes on to cite the Wall Street Journal article that broke the news of the WWE board of directors investigation McMahon. Initially looking into a $3 million Non Disclosure Agreement (NDA) between McMahon and a former paralegal, with whom the Chairman & CEO had a relationship. Looking into the NDA uncovered numerous other NDAs, some involving WWE Head of Talent Relations John Laurinaitis, all alleging some form of misconduct.
McMahon has since stepped down from his corporate duties, though still maintains control over the company’s creative direction. His daughter Stephanie McMahon has taken over as interim Chairwoman & CEO. Laurinaitis is expected by some backstage to be gone from the company as a result of the investigation, and was not at a recent episode of “WWE Smackdown,” while Vince appeared on the program.
The investigation by the Schall Law Firm is just that, an investigation, and the class action suit has not been certified as of yet. Anyone that contacts the investigation is not legally represented by them until the class is certified.
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