Securities class action litigation has been filed on behalf of investors in the securities of World Wrestling Entertainment, Inc. (“WWE” or the “Company”) (NYSE: WWE). If you purchased or otherwise acquired the securities of WWE between February 7, 2019 and February 5, 2020, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than May 5, 2020.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
WWE investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the WWE Securities Class Litigation
WWE, headquartered in Stamford, Connecticut, is a leading provider of wrestling entertainment. Prior to the Class Period, WWE entered into strategic relationships with the Kingdom of Saudi Arabia, including a multi-year television distributions rights agreement with a Saudi-controlled broadcaster, OSN, and a partnership to host live wrestling events in the country. The strategic relationships were important to WWE’s growth prospects and financial success as the Company experienced a declining fan base and deteriorating market in the U.S. WWE, however, faced significant public criticism for pursuing business with the Saudis in light of the country’s history of human rights abuses and autocratic policies of its ruling royal family. Unbeknownst to investors, a series of negative developments, including the October 2018 murder of journalist Jamal Khashoggi widely believed to have been directed by the Saudi government, created tensions between the government and WWE that jeopardized the success of their business relationship.
On April 25, 2019, the Company disclosed disappointing financial results for the first quarter of 2019 and weak guidance which analysts believed were related potential issues in the Company’s dealings with the Saudis. On this news, the price of WWE Class A common stock fell $13.12 per share, or approximately 13%, to close at $85.38 per share on April 25, 2019, on unusually high trading volume.
On October 31, 2019, WWE announced disappointing financial results for the third quarter of 2019 and that the media rights deal with the Saudis had been indefinitely delayed. In addition, the Saudi government reportedly had withheld tens of millions of dollars in payments owed to WWE. As the dispute escalated, WWE decided to cut a broadcasting feed of a live event held in Saudi Arabia, to which the Saudi government responded by temporarily refusing to allow several WWE wrestlers to leave the country. On this news, the price of WWE stock declined $10.40 per share, or approximately 15%, to close at $56.04 per share on October 31, 2019, on unusually high trading volume.
Then on January 30, 2020, in a startling turn of events, WWE announced that its co-presidents unexpectedly left the Company. On this news, the price of WWE stock declined $13.42 per share, or nearly 22%, to close at $48.88 per share on January 31, 2020, on elevated trading volume.
Shortly thereafter, on February 6, 2020, WWE announced disappointing financial results for the fourth quarter of 2019 and weak guidance due to the Company’s failure to secure a favorable broadcasting deal with the Saudis and revealed that the prospective media rights agreement with the Saudis had been excluded from WWE’s guidance. On this news, the price of WWE stock declined another $4.50 per share, or 9%, to close at $44.50 per share on February 6, 2020, on unusually high trading volume.
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About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In late 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”