WWE Stock Holders Misled On WWE Network Price Claims Lawsuit, Vince McMahon Plans More WWE Layoffs
The WWE stock price may have recovered somewhat in the lead up to
SummerSlam 2014, but now a class action lawsuit is alleging that WWE stock holders may have been misled by Vince McMahon and the WWE management.
In a related report by
The Inquisitr, it’s believed that the
WWE Monday Night RAW video taping may be combined with WWE
Smackdown in order to save money. The WWE layoffs may be continuing this week since it’s believed the company will be
releasing at least two more WWE superstars.
Recently, the separate law firms of Alfred G. Yates Jr. and Vincent Wong, Esq, both filed similar lawsuits against the WWE. According to Dave Meltzer of the
Wrestling Observer, it’s claimed that WWE stock holders were misled.
“[The WWE lawsuit is] representing people who purchased stock between October 31, 2013, and May 16, 2014. The complaint, like the other few similar ones, allege the company issued materially false and misleading statements regarding the company’s ability to negotiate a television contract price. During the period, the company issued releases showing its ratings being similar to NASCAR, with the idea that would be a barometer of what WWE could get for rights fees. However, WWE’s new deal ended up being worth less than one-sixth of what NASCAR’s television deal was.”
The second lawsuit by Wong states the “company violated securities law by failing to disclose the company’s true market value in television negotiations.”
As of this writing, the WWE stock price is less than half its value from its March of 2014 high. The WWE stock price is at $14.64, closing only slightly down from its three-month set on Monday. According to
Zacks Equity Research, “there could definitely be trouble on the horizon for this company… because WWE is now in overbought territory with an RSI value of 77.56.” In addition, they note that the WWE stock priced is an overall downward trend, and the WWE management has issued two earnings estimate revisions that were lower than before.
Considering that Vince McMahon has a 52 percent stake in the WWE stock, any increase in price would benefit the family ownership tremendously. As such, they have been attempting to raise the WWE Network subscription to the goal of one million by the end of 2014 by changing the WWE Network price. Besides the $9.99 monthly rate, they also have a $12.99 per month deal with no commitment. The good news is that the
SummerSlam 2014 attendance was at 17,537, while the 2013 show only had 14,500 attendees.
Read more at
http://www.inquisitr.com/1437788/ww...n-doing-more-wwe-layoffs/#cZqSWPYVPOJhcf8s.99