According to the law firm press release, the complaint arises out of false and misleading statements regarding the ability of the Company to transform its earning profile through, among other things, the negotiation of a lucrative long-term television deal. The complaint alleges that, during the Class Period, certain of WWE’s officers issued materially false and misleading statements regarding the Company’s ability to command a premium fee in upcoming negotiations to renew its television license agreement. Specifically, defendants caused WWE to issue false and misleading statements in public filings, press releases, and conference calls where they publicized their ability to renew their television license agreement at double the value in upcoming negotiations. These statements downplayed the fact that advertisers pay less to reach WWE viewers than traditional sports or other shows on the USA Network and the negative impact on the television license negotiations resulting from the Company’s launch of its WWE Network.
On May 15, 2014, after the market closed, the Company issued a press release that it had reached a multi-year deal with NBCUniversal Cable Entertainment increasing the value of the U.S. television license agreement by $57 million, or 50%. Upon this announcement, on May 16, 2014, WWE stock dropped over 43%, from $19.93 to close at $11.27.
On November 5, 2014, the Court issued an Order consolidating case and appointing lead plaintiff and lead counsel. Lead plaintiff filed an amended complaint on January 5, 2015.
On March 31, 2016, the Court issued an Order granting Defendants' motion to dismiss. Judgment was entered in favor of defendants, and this case was closed.