Yet Another Law Firm to Investigate WWE

As we have been reporting over the past couple of weeks, WWE has begun to be investigated for potential violations of security laws. During late April of 2014, Shareholders Foundation issued a press release, revealing an investigation. Then, on May 17, a New Orleans-based law firm also began to investigate WWE, following its new deal with NBCUniversal. Just three days later, it was revealed that the law firm of Ademi and O’Reilly would also investigate the company.

Now, on May 22, The Law Office of James C. Kelly, based out of New York City, issued a press release, revealing yet another investigation of WWE. Its investigation is also on behalf of shareholders, regarding potential violations of federal securities laws.

Below is part of the press release:

“NEW YORK, May 22, 2014 /PRNewswire/ — The Law Office of James C. Kelly is investigating potential claims on behalf of investors who purchased shares of World Wrestling Entertainment Inc. common stock (NYSE: WWE) during the period between August 1, 2013 and May 15, 2014, concerning possible violations of federal securities laws. Such investors are advised to contact James C. Kelly at 888.643.7517 or [email protected].

On May 15, 2014, WWE updated its business outlook by disclosing that if it achieves one million subscribers for its WWE television network by the end of this year, it would have operating losses of between $35 million and $45 million. Significantly, the company also disclosed that the WWE Network would need at least a range of 1.3 million to 1.4 million subscribers “to offset the complete cannibalization of the Company’s Pay-Per-View and” video-on-demand businesses. However, as recently as January 16, 2014, WWE’s CFO represented that at 1 million subscribers “we break even” for 2014 assuming the pay-per-view business goes away.

On this news, WWE common stock declined $8.66 per share or more than 43%, to close at $11.27 per share on May 16, 2014.”

Editor’s Note

Ho hum another law firm is investigating WWE. Yikes.