The following press release has been issued over a class action lawsuit against WWE. The claim is that WWE gave misleading and false statements about their ability to double the value of their US TV license agreement.
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") 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.
