WWE Investors File Class Action Lawsuit Due To Dropping Stock Price
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The Pomerantz Law Firm put out a press release announcing an investigation into and a class-action lawsuit against World Wrestling Entertainment following a year of declining stock prices. In their own words, “The investigation concerns whether WWE and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.”
They cite the period starting in April of 2019 and into the present as the crux of their investigation, including several incidents from that era. This includes the failure of the company to negotiate a favorable broadcasting deal with the Saudi government and the departures of WWE Co-Presidents George A. Barrios and Michelle D. Wilson.
This news comes on the same day that Vince McMahon has sold 2.26 million shares of WWE in order to provide more liquidity in this time of crisis. That move lowered the stock price by an additional 7.8%, with investors angry that his move didn’t reduce his control of the company. This is also not the first class action suit filed against WWE for their Saudi dealings, with a similar claim coming in from a different firm earlier this month.