WWE Being Investigated For Violating Federal Securities Laws?

A law firm based out of New York City called Levi & Korsinsky issued a press release regarding an investigation regarding WWE possibly violating federal securities laws. Below is the release in its entirety:

Levi & Korsinsky notifies investors that it has commenced an investigation of World Wrestling Entertainment, Inc. (“WWE” or “the Company”) (WWE) concerning possible violations of federal securities laws.

On October 31, 2019, WWE released its financial results for the third quarter of 2019. The Company disclosed a large decline in net income and cash flow generated as compared to the third quarter of 2018 and cited “unfavorable timing of working capital and lower operating performance” as the cause of the decline.

Following these disclosures, WWE’s stock price plummeted by 18.68%.

I’ve seen stuff like this before and nothing ever came of it. Law firms typically try to latch on to stuff like this when there is a significant drop in a company’s stock price. We’ll see if it’s determined there was any wrongdoing.


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