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WALL STREET IS NOT HAPPY WITH VINCE MCMAHON'S DECISION TO SELL OFF HIS STOCK, LAWSUIT FILED DUE TO THE MASSIVE DROP IN WWE SHARE PRICE AND MORE

By Dave Scherer on 2020-03-25 12:25:00

On a day when the overall market is booming, and man isn't that nice to see for a change, the WWE stock is currently down $3.08 (-7.89%) on the news that Vince McMahon is selling shares of the stock to give himself more liquidity.  It seems that Wall Street does not like the concept of Vince keeping the control that the shares he is selling should cause him to relinquish.  Bloomberg News’s Drew Singer eported that the deal priced 2.26 million shares at $38 apiece, representing more than $80 million in freed-up liquidity that will go to McMahon, all while he keeps control of the stock's perks, like voting rights and dividend payouts.

Yahoo Finance has an article pondering whether McMahon is ready to sell the company, which you can read by clicking here.

On another note, the following were released today as a class action lawsuit has been filed asserting that management decisions have led to the preciptious drop in the WWE stock price.

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of World Wrestling Entertainment, Inc.

NEW YORK, March 25, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  World Wrestling Entertainment, Inc. (“WWE” or the “Company”) (WWE).   Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether WWE and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On April 25, 2019, WWE disclosed disappointing financial results and fiscal guidance, which several analysts connected to difficulties in the Company’s business relationship with the Kingdom of Saudi Arabia, including a multi-year television distribution rights agreement with the Saudi-controlled Orbit Showcase Network (“OSN”) and a 10-year partnership with the Saudi General Sports Authority to host live events in Saudi Arabia.  On this news, WWE’s stock price fell $13.12 per share, or 13.32%, to close at $85.38 per share on April 25, 2019. 

Then, on October 31, 2019, in connection with the release of the Company’s third quarter 2019 financial results, WWE revealed significant underperformance across key metrics and revealed that its media rights deal with OSN had been indefinitely delayed.  On this news, WWE’s stock price fell $10.40 per share, or 15.65%, to close at $65.04 per share on October 31, 2019.  On January 30, 2020, WWE announced the departures of WWE Co-Presidents George A. Barrios and Michelle D. Wilson.  On this news, WWE’s stock price fell $13.42 per share, or 21.54%, to close at $48.88 per share on January 31, 2020. 

Finally, on February 6, 2020, WWE again disclosed disappointing financial performance, citing to its failure to secure a favorable broadcasting deal with the Saudi government, and revealed that the Saudi media rights deal had been completely excised from the Company’s financial forecasting.  On this news, WWE’s stock price fell $4.50 per share, or 9.18%, to close at $44.50 per share on February 6, 2020.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com

AND:

NEW YORK, NY / ACCESSWIRE / March 25, 2020 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies. If you suffered a loss you have until the lead plaintiff deadline to request that the court appoint you as lead plaintiff. There will be no obligation or cost to you.

World Wrestling Entertainment, Inc. (WWE)

If you suffered a loss, contact us at: http://www.wongesq.com/pslra-1/world-wrestling-entertainment-inc-loss-submission-form?prid=5800&wire=1
Lead Plaintiff Deadline: May 5, 2020
Class Period: February 7, 2019 to February 5, 2020

Allegations against WWE include that: Defendants perpetrated a fraudulent scheme which: (i) deceived the investing public regarding WWE's business and prospects; (ii) artificially inflated the price of WWE Class A common stock; (iii) permitted certain senior executives of WWE to sell more than $282 million worth of their personally held shares at fraud inflated prices; and (iv) caused the public to purchase WWE Class A common stock at artificially inflated prices.

HP Inc. (HPQ)

If you suffered a loss, contact us at: http://www.wongesq.com/pslra-1/hp-inc-loss-submission-form?prid=5800&wire=1
Lead Plaintiff Deadline: April 20, 2020
Class Period: February 23, 2017 to October 3, 2019

According to the filed complaint, defendants knew that HP's "four-box" model for measuring its supplies business was severely deficient and not a strong predictor of supplies demand and outcomes because HP lacked telemetry data from its commercial printers and had to use unreliable and stagnant market share data to develop assumptions for the four-box model. The complaint further alleges that defendants knew the lack of telemetry data for commercial printing was a critical shortcoming of the four-box model because HP possessed telemetry data on its personal printing side and knew it was a necessary element for an accurate understanding of the supplies channel. As a result, the supplies inventory in the Company's channel exceeded demand by at least $100 million and HP's supplies revenue growth was grossly inflated.

Jeld-Wen Holding, Inc. (JELD)

If you suffered a loss, contact us at: http://www.wongesq.com/pslra-1/jeld-wen-holding-inc-loss-submission-form?prid=5800&wire=1
Lead Plaintiff Deadline: April 20, 2020
Class Period: January 26, 2017 to October 15, 2018

Allegations against JELD include that: (1) the Company's products, including doors, did not compete against other manufacturers on price, contrary to Jeld-Wen's representations; (2) the market in which the Company sells its doors is not "highly competitive" as the Company claimed; (3) Jeld-Wen's strong margins and anticipated margin growth were not, as the Company claimed, attributed to changes they had made in Jeld-Wen's business operations and strategies; and (4) Jeld-Wen failed to disclose the Company's anti competitive conduct. Because of the foregoing, Defendants' statements about the Company's business, operations and prospects lacked a reasonable basis.

To learn more contact Vincent Wong, Esq. either via email vw@wongesq.com or by telephone at 212.425.1140.

Vincent Wong, Esq. is an experienced attorney who has represented investors in securities litigations involving financial fraud and violations of shareholder rights. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:

Vincent Wong, Esq.
39 East Broadway
Suite 304
New York, NY 10002
Tel. 212.425.1140
Fax. 866.699.3880
E-Mail: vw@wongesq.com

SOURCE: The Law Offices of Vincent Wong

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