WWE Under Further Investigation For Potential Violation of Security Laws

A New Orleans-based law firm has put WWE under investigation over accusations that it may have violated state or federal securities laws when it settled its new television deal with NBCUniversal on Thursday. A release was sent out by the firm, and can be found below. It should be mentioned that WWE had previously been under investigation for such.

WWE INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL:
Kahn Swick & Foti, LLC Investigates World Wrestling Entertainment Inc. Following Disclosure of Disappointing Distribution Agreement

NEW ORLEANS, May 16, 2014 (BUSINESS WIRE) — Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into World Wrestling Entertainment Inc.

On May 16, 2014, WWE disclosed that it had reached a multiyear deal with US broadcaster NBCUniversal for its long-running Raw and SmackDown programs, stating that the annual value of its television distribution agreements would reach $200 million, well below what investors were expecting. Daniel Moore, an analyst with CJS Securities, said in a research note that, “Given management’s more optimistic tone and the fact that other major sports franchises have garnered much higher increases, this outcome is likely to be viewed as disappointing by many investors.”

On this news, the value of WWE’s stock plummeted by over 43%.

KSF’s investigation is focusing on whether WWE and/or its officers and directors violated state or federal securities laws.

If you have information that would assist KSF in its investigation, or would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis Kahn ( [email protected] ) or KSF Partner Melinda Nicholson ( [email protected] ) toll free at 1-877-515-1850.

Wrestling Rumors noted Friday WWE’s stock dropped dramatically over concerns about the new television agreement the company brokered with NBCUniversal, which was well short of what many had anticipated. The stock dropped so much, Vince McMahon reportedly lost $340 million on Friday alone, and dropped off billionaire status.

There are also lingering concerns about the future of the WWE Network, though all eyes are on the company for the television deals right now.

Editor’s Note:

Perhaps the worst three days in WWE history? The financial situation of the company, which is public, changed dramatically and some sort of drastic shifting is likely ahead. Wow.

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