The following announcement was issued on the WWE Corporate website, reminding investors of the deadline to file a motion in a new class-action lawsuit against WWE due to stock losses.
Among the details in the suit, it is alleged that WWE made “materially false and/or misleading statements” about their business dealings, including:
- Experiencing rising tension with Saudi government and a breakdown in negotiations for a broadcast deal
- Failure to disclose the Saudi government and affiliates failed to make payments owed in the millions per contractual agreement
- The Orbit Showcase Network (“OSN”) had terminated the broadcast of WWE programming in the first quarter of 2019 despite a contractual obligation and refused to restart the broadcast of WWE programming
The full release is below:
LOS ANGELES, April 06, 2020 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming May 5, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of World Wrestling Entertainment, Inc. (“WWE” or “the Company”) (NYSE: WWE) investors who purchased securities between February 7, 2019 and February 5, 2020, inclusive (the “Class Period”).
If you suffered a loss on your WWE investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email shareholders@glancylaw.com or visit our website at www.glancylaw.com to learn more about your rights.
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.
On this news, the Company’s share price fell $10.40 per share, or over 15%, to close at $65.04 per share on October 31, 2019, thereby injuring investors further.
Then, on January 30, 2020, WWE announced the departures of WWE Co-Presidents George A. Barrios and Michelle D. Wilson.
On this news, the Company’s share price fell $13.42 per share, or over 21%, to close at $48.88 per share on January 31, 2020, thereby injuring investors further.
Finally, on February 6, 2020, WWE reported adjusted OIBDA of only $180 million due to the failure to complete a media rights deal for the MENA region.
On this news, the Company’s share price fell $4.50 per share, or over 9%, to close at $44.50 per share on February 6, 2020, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that they were experiencing rising tension with the Saudi government and a breakdown in negotiations over a renewed broadcasting distribution deal; (2) that the Saudi government and its affiliates had failed to make millions of dollars in payments owed to WWE pursuant to existing contractual commitments between the parties, including at least $60 million owed in connection with the June 2019 Super ShowDown event; (3) that the Orbit Showcase Network (“OSN”) had terminated the broadcast of WWE programming in the first quarter of 2019 despite a contractual obligation to continue such broadcasts and this cancellation was symptomatic of a deterioration in the business relationship between the parties; (4) that the OSN had rebuffed efforts to renew a distribution rights agreement on terms acceptable to WWE, and such renewal was unlikely to occur in 2019, if ever; (5) that WWE did not have the ability to expand its operations in the Middle East or within Saudi Arabia as had been represented to investors; (6) that the OSN had refused to restart the broadcast of WWE programming despite a contractual obligation to continue such broadcasts; and (7) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
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If you purchased or otherwise acquired WWE securities during the Class Period, you may move the Court no later than May 5, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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