The Law Office of James C. Kelly announced on Thursday they are investigating WWE on behalf of investors that purchased shares of the company between August 1, 2013 and May 15, 2014. You can read the release at this link.
Multiple investigations have been launched since WWE announced their new TV distribution agreement with NBCUniversal. We can confirm active investigations by Ademi & O’Reilly, LLP, former Attorney General of Louisiana, Charles C. Foti, Jr., Esq. and a claim made back in April that WWE dismissed.
These in addition to Lemelson Capital Management calling for WWE to replace the executive management team or explore the sale of the business.
The claim is that WWE misled investors in regards to the valuation of their deal, thus inflating the price of their stock. The price plummeted after the deal was announced and Vince McMahon lost nearly one third of his net worth. This in addition to questions regarding the profitability of the WWE Network at a steady domestic state of 1 million subscribers.