WWE hit with Class Action Lawsuit over TV Deal

[Apricots And A Pear Tree]

CLASS ACTION LAWSUIT FILED AGAINST WWE OVER TV DEAL
By Dave Scherer on 2014-07-26 09:36:01

The following was announced last night

The Law Office of Robbins Arroyo LLP Announces that It Has Filed a Class Action Lawsuit Against World Wrestling Entertainment, Inc.

SAN DIEGO & WEST LAFAYETTE, Ind., July 25, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that it has filed a federal securities class action lawsuit on July 25, 2014, in the U.S. District Court for the District of Connecticut (the "Court"), on behalf of all persons who purchased or otherwise acquired World Wrestling Entertainment, Inc. ("WWE" or the "Company") securities between October 31, 2013 and May 16, 2014, inclusive (the "Class Period"), against the Company and certain of its officers and directors for, among other things, violations of section 10(b) of the U.S. Securities and Exchange Act of 1934 (the "Exchange Act") and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint seeks relief on behalf of the named plaintiffs and all other similarly situated shareholders of WWE during the Class Period. The named plaintiffs are represented by Robbins Arroyo LLP.

WWE Is Accused of Making False and Misleading Statements Concerning the Company's Ability to Double the Value of Its U.S. Television License Agreement

The complaint arises out of false and misleading statements regarding the ability of the Company to transform its earning profile through, among other things, the negotiation of a lucrative long-term television deal. The complaint alleges that, during the Class Period, certain of WWE's officers issued materially false and misleading statements regarding the Company's ability to command a premium fee in upcoming negotiations to renew its television license agreement. Specifically, defendants caused WWE to issue false and misleading statements in public filings, press releases, and conference calls where they publicized their ability to renew their television license agreement at double the value in upcoming negotiations. These statements downplayed the fact that advertisers pay less to reach WWE viewers than traditional sports or other shows on the USA Network and the negative impact on the television license negotiations resulting from the Company's launch of its WWE Network.

WWE's Stock Price Drops on News of the New Television License Agreement Value

On May 15, 2014, after the market closed, the Company issued a press release that it had reached a multi-year deal with NBCUniversal Cable Entertainment increasing the value of the U.S. television license agreement by $57 million, or 50%. Upon this announcement, on May 16, 2014, WWE stock dropped over 43%, from $19.93 to close at $11.27. The omitted and/or misrepresented information is believed to be material to potential WWE shareholders' ability to make an informed decision whether to purchase WWE stock.

If you purchased or otherwise acquired WWE stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than sixty days from July 25, 2014. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact attorney Darnell R. Donahue of Robbins Arroyo LLP at 800-350-6003, via the shareholder information form on our website, or by e-mail at [e-mail] . Any member of the Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent Class member.

Robbins Arroyo LLP, a nationally recognized leader in the area of shareholder rights litigation, represents individual and institutional investors in securities class action lawsuits and shareholder derivative actions. Robbins Arroyo LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Past results do not guarantee similar outcomes. For more information about the firm, please go to www.robbinsarroyo.com .

Press release link: www.robbinsarroyo.com/shareholders-rights-blog/world-wrestling-entertainment-inc-class-action

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
[e-mail]
[phone] or Toll Free [phone]
www.robbinsarroyo.com

Source:http://www.pwinsider.com/article/87182/class-action-lawsuit-filed-against-wwe-over-tv-deal-.html?p=1

[EoE: Well There's Your Problem]

San Diego? Dammit Mysterio, is this why you weren't cashing your paychecks?

[Lila]

[mrjl]

just because they didn't doesn't mean they couldn't have done it. Nothing's going to come of this and nothing should come of this

[Kevin Hamilton]

Who knows if it'll go anywhere, but that's the risk you run when you use carny exaggeration bullshit on your own shareholders.

[Deleted]

I doubt that much comes of this, but the shine is off the corporate side of the E something fierce, they'll eventually do something that legitimately hurts the company.

Anyone with critical thinking skills should have been able to realize that there was virtually no way for the E to double and get close to what real sports were getting for TV rights.

[________ has left the building]

Jerry McDevitt is really earning his checks the last couple of months.

[Hawk Hart]

Me and Sean Carless 'bout to get paid.

[EoE: Well There's Your Problem]

Jul 26, 2014 9:32:57 GMT -5 ________ has left the building said:

Jerry McDevitt is really earning his checks the last couple of months.

Unfortunately, they're a lot smaller now.

[Ryushinku]

*reads the entire piece*

...they're hoping for a settlement.

[Deleted]

Jul 26, 2014 10:33:20 GMT -5 Ryushinku said:

*reads the entire piece*

...they're hoping for a settlement.

Considering that's how lawyers make their money, that kind of goes without saying.

[Xxcjb01xX [PIECE OF: SH-]]

Expect Extra Double Super Shilling of the WWE Network on RAW...

[SEAN CARLESS]

Here's the truth, unlike the Network hype, which was based off of pure carny bullshit projections from an absurd and completely untrue 'poll' that stated that domestically there were 60 million WWE fans, the TV rights fee projections were actually fair. WWE's TV viewing audience is actually larger than almost every sport that doubled and even tripled their TV rights numbers recently. Ergo, they should have been given the same or even higher rates based on the fact that they have a larger and more loyal and consistent audience.

HOWEVER, the problems were in that A) the stink of Vince McMahon's prior brain farts and current flawed presentation soured TV execs to the content (the same way , despite having equal viewers at one time, Springer never got Oprah money or clout due to the low-brow reputation of the programming), and B) despite being such a large audience, wrestling fans, despite WWE's hyperbole, are actually on the whole economically insignificant. That's why outside of a few toy ads, they don't get the truly big time NFL-esque ad's courting them. WWE's audience does not spend their money, (as the Network has also revealed) or in many cases, does not have it to spend. So in a world wherein you have 4 million people who won't buy what's being advertised, because they won't, or can't, they become inherently worthless to ad exes and TV execs. And that's where WWE found themselves. But luckily USA gave them a bump if only to maintain their cable average.

[Michael Coello]

Sounds like good time to buy WWE stock at the cheap.

[FAR5222]

You would think this and other shit that has been hitting them for the last 5 months would give them a jolt in the creative juices, to give us some good quality storytelling to keep viewers interested every Monday.

I haven't spent money on a single WWE merchandise since 2012. The last shirt I purchased was Cena's navy blue "10 Years Strong" I just buy tickets for Raw tapings when they come to Brooklyn.

[Deleted]

Jul 26, 2014 8:51:36 GMT -5 Lila said:

Ok, I admit I didn't list you in the favorite posters thread, but the constant use of 80's Madonna is totally winning me over.

[Boo!]

I think the lawsuit has a chance.

During the times they were making their pledges that they would "at least double" the contract they would have been in negotiations with the networks then and would have had a fair idea of whether that was feasible. If documentation shows that NBC and other interested parties were showing no signs of touching WWE's expectations and then WWE were outright lying to their shareholders...that's some serious, serious shit.

It doesn't matter if they "hoped" to double, that's irrelevant. If that's an excuse shareholders can be told anything on the basis that the company "hoped" it would be true. It's illegal to deliberately mislead shareholders and unless they can substantiate that they had grounds to make the outlandish claims (and not "well, we thought it would be nice if we did") then I think this has the potential to be sex abuse scandal/steroids/XFL times about 40.

The protection of shareholders' right not to be mislead is one of those things you simply don't piss about with.

[ICBM]

Damn, this could get bad. I'm no legal expert but you don't come after a Giant corporate entity like this unless you really have something. Even a settlement hurts wwe with its shareholders because the suit is directly connected to its shareholders. Stocks are based on confidence. If the company has to settle or loses the suit if it goes to court, the confidence in holding stock is shaky at best, gone at worst. This is potentially very very bad. A spiral effect in the fallout could lead to a drastically reduced product and almost certainly a diminished global footprint until they can get back on track. If it gets too bad, another parent media company could bail them out so that the brand not only returns to its place but expands. NBC universal is one such entity and the McMahons have long standing ties to NBC. Not saying that is going to happen, just spit balling potential changes and effects

[TWERKIN' MAGGLE]

This is obviously Daniel Bryan's fault.

[slaughterama]

Jul 26, 2014 12:26:32 GMT -5 Boo! said:

I think the lawsuit has a chance.

During the times they were making their pledges that they would "at least double" the contract they would have been in negotiations with the networks then and would have had a fair idea of whether that was feasible. If documentation shows that NBC and other interested parties were showing no signs of touching WWE's expectations and then WWE were outright lying to their shareholders...that's some serious, serious shit.

It doesn't matter if they "hoped" to double, that's irrelevant. If that's an excuse shareholders can be told anything on the basis that the company "hoped" it would be true. It's illegal to deliberately mislead shareholders and unless they can substantiate that they had grounds to make the outlandish claims (and not "well, we thought it would be nice if we did") then I think this has the potential to be sex abuse scandal/steroids/XFL times about 40.

The protection of shareholders' right not to be mislead is one of those things you simply don't piss about with.

Agree. This is a fairly big deal. They will also look to see if any of the company's higher-ups unloaded a significant amount of stock around that time, which, if memory serves, Stephanie did.

I'd have to see and read more details about this, but this has potential to be pretty big depending what they can prove.