World Wrestling Entertainment, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired World Wrestling Entertainment, Inc. (“WWE” or the “Company”) (NYSE: WWE) securities during the period from February 7, 2019 through February 5, 2020. Investors have until May 5, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) WWE was experiencing rising tension with the Saudi government and a breakdown in negotiations over a renewed broadcasting distribution deal; (ii) 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; (iii) 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 that this cancellation was symptomatic of a deterioration in the business relationship between the parties; (iv) OSN had rebuffed efforts to renew a distribution rights agreement on terms acceptable to WWE; and (v) WWE did not have the ability to expand its operations in the Middle East or within Saudi Arabia as had been represented to investors.
On April 25, 2019, WWE reported disappointing first quarter 2019 financial results, revealing that revenues had fallen year over year on notable declines in the live events and consumer products segments. On this news, WWE’s shares fell $13.12, or 13.3%, to close at $85.38 per share on April 25, 2019.
On October 31, 2019, WWE reported its third quarter 2019 financial results and Co-President George Barrios stated that “no assurances” could be given that the deal with Saudi Arabia would ever be completed. That same day, news reports surfaced that the Saudi government was effectively holding a number of WWE wrestlers “hostage” in retaliation for CEO McMahon’s decision to delay a live broadcast until the Saudis made tens of millions of dollars in past due payments. On this news, WWE’s shares fell $10.40, or 15.6%, to close at $56.04 per share on October 31, 2019.
On January 30, 2020, WWE announces the sudden departure of its Co-Presidents, George Barrios and Michelle Wilson. On this news, WWE’s shares fell $13.42, or 21.5%, to close at $48.88 per share on January 31, 2020.
Finally, on February 6, 2020, WWE again announced disappointing financial results and guidance including just $180 million in adjusted OBIDA for the year due to the failure to complete the MENA distribution agreement with the Saudis. On this news, WWE’s shares fell $4.50, or 9.2%, to close at $44.50 per share on February 6, 2020.
If you acquired WWE securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.