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The following press release was issued this week:
January 31, 2023 11:00 AM Eastern Standard Time
NEW YORK--Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of World Wrestling Entertainment, Inc. (“WWE” or the “Company”) (NASDAQ: WWE). Investors who purchased WWE securities are encouraged to obtain additional information and assist the investigation by visiting the firm’s site: www.bgandg.com/wwe.
The investigation concerns whether WWE has violated federal securities laws.
On June 15, 2022, The Wall Street Journal published an article entitled “WWE Board Probes Secret $3 Million Hush Pact by CEO Vince McMahon, Sources Say” which revealed that “[t]he board of World Wrestling Entertainment Inc. [] is investigating a secret $3 million settlement that longtime chief executive Vince McMahon agreed to pay to a departing employee with whom he allegedly had an affair, according to documents and people familiar with the board inquiry.” The article further revealed, among other things, that “[t]he board's investigation, which began in April, has unearthed other, older nondisclosure agreements involving claims by former female WWE employees of misconduct by Mr. McMahon and one of his top executives, John Laurinaitis, the head of talent relations at WWE, the people said.”
On this news, WWE's stock price fell $2.31 per share, or 3.4%, to close at $64.87 per share on June 16, 2022. On July 22, 2022, Vince McMahon announced his retirement from WWE. Then, on July 25, 2022, WWE filed with the U.S. Securities and Exchange Commission a current report on Form 8-K which announced, among other things, that “[t]he Company has made a preliminary determination that certain payments that Vince McMahon agreed to make during the period from 2006 through 2022 (including amounts paid and payable in the future), and that were not recorded in the WWE consolidated financial statements, should have been recorded as expenses in the quarters in which those agreements were made (the ‘Unrecorded Expenses’)[,]” which “[a]s of the date hereof, the Company has identified Unrecorded Expenses totaling approximately $14.6 million.”
The report further announced that “the Company currently anticipates that it will revise its previously issued financial statements to record the Unrecorded Expenses in the applicable periods for the years ended December 31, 2019, 2020 and 2021, as well as the first quarter of 2022[.]” Finally the report also announced that “[t]he Company has also received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas or demands arising from, related to, or in connection with these matters.”
If you are aware of any facts relating to this investigation or purchased WWE shares, you can assist this investigation by visiting the firm’s site: www.bgandg.com/wwe. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits. The firm has recovered hundreds of millions of dollars for investors nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.
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