WWE is Under Investigation by Another Firm for Securities Fraud

WWE is under investigation by another firm for securities fraud. The law firm of Ademi & O’Reilly issued a press release on May 20 claiming that they are investigating WWE on stock frauds and will be looking at a class period of information in this regard between Aug. 1, 2013-May 15, 2014. 

The press release reads,

We are investigating possible securities fraud claims against World Wrestling Entertainment Inc. resulting from inaccurate statements WWE made regarding its business practices, financial statements and prospects.

Our investigation focuses on the extent to which WWE issued false and misleading statements regarding its business practices, financial statements, past and future business performance and prospects.  Specifically, WWE’s statements that it would double the value of its domestic contracts for its two most popular shows, Monday Night Raw and Friday Night Smackdown, and that the prospects for its recently launched streaming video network were strong were false and misleading.

Ademi & O’Reilly join the ranks of a number of other firms who are collectively investigating WWE on the grounds of fraud. One announced such an investigation in April, while another launched just hours following WWE’s new television distribution deal with NBCUniversal, which was considerably less than the company projected the previous year. With this deal being less than expected, WWE stock dropped almost 50% and cost WWE CEO Vince McMahon $350 million. 

Editor’s Note:
“Here comes the moneeyyyyyy…(money talks) here comes the money. Money, money, money, money.” All I think about when I see something related to WWE and money/stocks is Shane’s entrance theme. I don’t know why.