WWE is Facing Yet Another Lawsuit

WWE is facing yet another lawsuit. The latest edition of the Wrestling Observer Newsletter has reported that the law offices of Alfred G. Yates Jr. filed a class action suit against WWE on Aug. 26. Much like the many lawsuits that have been filed against the company as of late, the issue has to deal with the company misleading stock holders.

Dave Meltzer of the Wrestling Observer writes,

“Yet another class action lawsuit was filed against the company on 8/26, by the law offices of Alfred G. Yates Jr., in Connecticut, again representing people who purchased stock between October 31, 2013, and May 16, 2014. The complaint, like the other few similar ones, allege the company issued materially false and misleading statements regarding the company’s ability to negotiate a television contract price. During the period, the company issued releases showing its ratings being similar to NASCAR, with the idea that would be a barometer of what WWE could get for rights fees. However, WWE’s new deal ended up being worth less than one-sixth of what NASCAR’s television deal was.

That was the second lawsuit filed over the past week. The firm of Vincent Wong, Esq, out of New York, has filed a similar case, stating the company violated securities law by failing to disclose the company’s true market value in television negotiations.”

There have been a number of lawsuits issued against WWE recently in regards to this matter. However, WWE is also facing legal troubles with a former producer who filed suit against Big Show in the Fall of 2013. The release of Alberto Del Rio was also said to have stemmed from legal pressures put on the company when the Social Media employee Del Rio slapped threatened to press charges and sue the company, in a case that would have looked a lot like the one currently against Big Show.

Many wonder when the legal programs will stop for WWE, but the safe bet is, as a publicly traded company that failed to pull in the money it said that it would after signing a new television deal and launching the WWE Network, the lawsuits are far from over.

Editor’s Note:
You reap what you sow? I dunno.