Law Firm Investigating WWE For Possible Federal Securities Fraud Violations
EEK!
Securities law firm Levi & Korsinsky released a press release this week notifying WWE investors of their plans to investigate the company for "Possible Securities Fraud Violations by Certain Officers and Directors of World Wrestling Entertainment, Inc.".
That was then later amended, and the firm removed any and all mention of "Certain Officers and Directors" from their alert.
Below is more information from Levi & Korskinsky's modified release.
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%.
The firm, which has offices in New York, California, Connecticut and Washington, is currently carrying out their investigation, and it's still early days, but this doesn't sound too good for WWE. Any mention of words like "fraud" and "violations" when pertaining to company accounts should be taken very seriously.
Stay tuned for further updates on the situation. This plot is just thickening.