The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against World Wrestling En...
May 04 2020 - 1:41PM
Business Wire
The Law Offices of Frank R. Cruz reminds investors of the
upcoming May 5, 2020 deadline to file a lead plaintiff
motion in the class action filed on behalf of investors who
acquired World Wrestling Entertainment, Inc. ("WWE" or "the
Company") (NYSE: WWE) securities between February 7, 2019 and
February 5, 2020, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to
participate.
On April 25, 2019, WWE reported that for first quarter 2019,
revenue declined year-over-year, notably in the live events and
consumer products segments. Though the Company attributed the
decline to the absence of certain “Super Stars,” several analysts
connected the results to difficulties securing a media rights deal
for the Middle East and North Africa (“MENA”) region with the
Kingdom of Saudi Arabia.
On this news, the Company’s share price fell $13.12 per share,
or over 13%, to close at $85.38 per share on April 25, 2019,
thereby injuring investors.
Then, on October 31, 2019, in connection with the Company’s
third quarter 2019 financial results, WWE lowered its fiscal 2019
adjusted OIBDA guidance to a range of $180 million to $190 million,
stating that “no assurances” could be made that a media rights deal
for the MENA region would ever be completed.
On this news, the Company’s share price fell $10.40 per share,
or over 15%, to close at $65.04 per share on October 31, 2019,
thereby injuring investors further.
Then, on January 30, 2020, WWE announced the departures of WWE
Co-Presidents George A. Barrios and Michelle D. Wilson.
On this news, the Company’s share price fell $13.42 per share,
or over 21%, to close at $48.88 per share on January 31, 2020,
thereby injuring investors further.
Finally, on February 6, 2020, WWE reported adjusted OIBDA of
only $180 million due to the failure to complete a media rights
deal for the MENA region.
On this news, the Company’s share price fell $4.50 per share, or
over 9%, to close at $44.50 per share on February 6, 2020, thereby
injuring investors further.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that they were experiencing rising tension with the
Saudi government and a breakdown in negotiations over a renewed
broadcasting distribution deal; (2) that the Saudi government and
its affiliates had failed to make millions of dollars in payments
owed to WWE pursuant to existing contractual commitments between
the parties, including at least $60 million owed in connection with
the June 2019 Super ShowDown event; (3) that the Orbit Showcase
Network ("OSN") had terminated the broadcast of WWE programming in
the first quarter of 2019 despite a contractual obligation to
continue such broadcasts and this cancellation was symptomatic of a
deterioration in the business relationship between the parties; (4)
that the OSN had rebuffed efforts to renew a distribution rights
agreement on terms acceptable to WWE, and such renewal was unlikely
to occur in 2019, if ever; (5) that WWE did not have the ability to
expand its operations in the Middle East or within Saudi Arabia as
had been represented to investors; (6) that the OSN had refused to
restart the broadcast of WWE programming despite a contractual
obligation to continue such broadcasts; and (7) as a result,
Defendants’ public statements were materially false and/or
misleading at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired WWE securities during the
Class Period, you may move the Court no later than May 5,
2020 to request appointment as lead plaintiff in this putative
class action lawsuit. To be a member of the class action you need
not take any action at this time; you may retain counsel of your
choice or take no action and remain an absent member of the class
action. If you wish to learn more about this class action, or if
you have any questions concerning this announcement or your rights
or interests with respect to the pending class action lawsuit,
please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz,
1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067
at 310-914-5007, by email to info@frankcruzlaw.com, or visit our
website at www.frankcruzlaw.com. If you inquire by email please
include your mailing address, telephone number, and number of
shares purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200504005631/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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