Shareholder rights law firm Robbins Arroyo LLP announced yesterday 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 on behalf of all persons who purchased or otherwise acquired WWE stocks between October 31, 2013 and May 16, 2014.
The lawsuit is 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 and U.S. Securities and Exchange Commission Rule 10b-5.
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 suit alleges that certain WWE officers issued materially false and misleading statements regarding the Company’s ability to command a premium fee in negotiations to renew its television license agreement.
This all started when WWE stocks took a 43% dive in just one day after WWE announced it extended its television partnership with NBC Universal for far less money than they originally thought.