WWE is being investigated by former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC, as to whether the company or its officers and directors violated state or federal securities laws by overstating the value of their new domestic TV licensing agreement.
Daniel Moore, an analyst with CJS Securities, said in a research note that, “Given management’s more optimistic tone and the fact that other major sports franchises have garnered much higher increases, this outcome is likely to be viewed as disappointing by many investors.”
A complete press release on the investigation is available at this link.
Friday was a horrible day for WWE as the company experienced fallout from their underwhelming new TV agreement with NBCUniversal. The company’s stock went into free fall, Vince McMahon lost nearly one third of his net worth and an investment firm called for WWE to fire management or explore selling the business.