World Wrestling Entertainment under investigation

World Wrestling Entertainment Securities Class Action

World Wrestling Entertainment Securities Class Action: A law firm recently began looking into shareholders’ claims that an entertainment company may have breached fiduciary duty. This could become a securities class action lawsuit in the future.

Law office Levi and Korsinsky, LLP, noted that it started its investigation of World Wrestling Entertainment, Inc. This began due to the company’s agreement with NBCUniversal to broadcast its SmackDown and Raw shows. The deal was worth approximately $200 million, which was notably lower than what investors initially considered. The company’s CEO, Vince McMahon, explained that there was some disappointment from the company due to the deal.

When this information surfaced, the company’s stock fell to $10.96 per share on May 19, 2014. Back on May 15, 2014, the stock level was $19.93 per share.

For shareholders who would like to receive more details on the investigation process, it is an option to discuss these matters with the law office. The best person to contact is Eduard Korsinsky, and he can be reached by telephone or email. There is also further details available on the litigation firm’s website.

Second investigation begins
Another law office noted that it would seek answers to shareholders’ questions about World Wrestling Entertainment’s deal with NBCUniversal, due to the potential for those who own stock to be hurt financially by the decision. Like the previous investigation, this also has the possibility to become a securities class action lawsuit.

Charles Foti, a former Attorney General in Louisiana, as well as a partner at law office Kahn Swick and Foti, LLC., noted that he began investigating World Wrestling Entertainment due to the the low valuation of the transaction. The deal knocked the company’s stock down more than 40 percent, and there is a possibility that World Wrestling Entertainment violated securities laws at either the state or federal level.

World Wrestling Entertainment Securities Class Action

“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,” said Daniel Moore, analyst at CJS Securities.

It is an option for stockholders to contact the law office in order to learn more about the investigation and how the process could affect a shareholder’s legal rights at no additional cost. Those with information that could help the process are also asked to come forward. Both Lewis Kahn and Melinda Nicholson can be reached by telephone or email.