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Post by Next Man’s Knowing Rock on Jul 26, 2014 7:06:23 GMT -5
Essentially, a law firm is taking action against WWE for spending the first half of the year lying about the viability of the network and the new TV deal, lies which enticed people to buy shares.
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Post by jayrod2009 on Jul 26, 2014 7:26:11 GMT -5
Wow. Snake in the grass law firm. WWE secured a long-term TV deal. Now, of course with the Network they may lose a TV deal for their PPV's because they are offered for 85% less with The Network.
All to ensure a maximum profit for its share holders? This is to ensure a maximum payoff for you're Florida home and Winter vacation. Jerks!!! I understand if someone held 20% shares, but at the average 1% what's the point?
1% of WWE stock ( currently at $1 Million, makes it $10k. You have to sell the stock. So, I assume if the law firm wins the case, each share holder would be entitled to pay a fee to the law firm? Which, would most likely come from the share amount. Which at 5% , that 10k dropped to $7.5k
They are out for money, Nd to hurt the share holder.
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Post by Next Man’s Knowing Rock on Jul 26, 2014 7:29:05 GMT -5
Wow. Snake in the grass law firm. WWE secured a long-term TV deal. At a much lower rate than they'd been pretending they were going to get.
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Post by jayrod2009 on Jul 26, 2014 7:34:55 GMT -5
Wow. Snake in the grass law firm. WWE secured a long-term TV deal. At a much lower rate than they'd been pretending they were going to get. True. But the forcing of share buying is garbage. WWE is a global entity . It's stocks are worthy. This law firm just wants to capitalize on a rough yeast where the share holds would be a pay out. Imagine getting $2,500 from each share holder, plus the original sue amount? That's a law firm beach vacation for the winter. All for credits to the law firm during their crummy adds. " we want toe to toe with Vince McMahon and his WWE".... off.
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Post by JC Motors on Jul 26, 2014 11:14:51 GMT -5
Seems Frivolous
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Mr. K.O
Main Eventer
Joined on: Mar 24, 2010 19:04:14 GMT -5
Posts: 4,094
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Post by Mr. K.O on Jul 26, 2014 13:10:45 GMT -5
David Otunga can get them out of this -sips coffee-
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Deleted
Joined on: May 11, 2024 8:48:51 GMT -5
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Post by Deleted on Jul 26, 2014 20:28:45 GMT -5
David Otunga can get them out of this -sips coffee- I do see their point about a CEO or a company releasing 'FRAUDULENT' claims. There may not be legal repercussions & there's always risk with stocks/promises, but if you could prove (nearly impossible unless you had a whistle blower) the intent was to lie for stock purchases, there would be consequences.
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Deleted
Joined on: May 11, 2024 8:48:51 GMT -5
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Post by Deleted on Jul 26, 2014 23:07:23 GMT -5
It seems like there is a different wwe lawsuit every week.
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Post by Random Hero Est. 2003 on Jul 26, 2014 23:41:56 GMT -5
This actually is pretty serious news for the WWE as a company. You won't see a change to the quality of product on TV (or, lack thereof? lol just kidding) of the television show itself, but as a publicly traded entity, the WWE has to abide by certain codes of conduct and federal laws within the SEC (the governing body of the stock market). One of those laws is that the company (WWE) must be truthful in their description of the immediate and long term viability and value of their stock. Now, in context to what I'm saying, stock viability and value is completely hindered upon things like brand awareness, social responsibility, corporate image, contracts, new products, etc, etc. Moving forward, the company should be fully aware and competent enough to not only do the research and discover the true value of their stock, both short and long term, but to also live up to their responsibility of make the stock more valuable, again both short and long term.
In this case, the WWE is being sued by a single firm representing anyone who bought or otherwise accumulated WWE stock from October '13 to May '14. The reason is because according to all logic and justification, the WWE blatantly lied to the public about how valuable their stock is going to be in the long term. No, they did not stand at a podium and say, "Our stock is going to be worth 33.23 in May '14" but they said, "The value of our new television contract with USA is worth twice as much as it is now and HEY, WE'LL BE SIGNING THE DEAL IN MAY '14." Not ONLY this, but the WWE also publicly projected that the new "WWE Network" could and should see 1 million subscribers as early as 2nd quarter '14. When is 2nd quarter '14? April, MAY, June. The numbers for the Network were actually embarrassing. Only 600,000 people signed up for their service. As you can see, they seemingly baited their stakeholders into buying WWE stock with a TV contract and a brand new revenue stream in the form of the Network. When those who owned and cared about WWE performance on the stock exchange both for personal and professional purposes finally saw the numbers from the contract with USA and the Network subscribers, the value of the stock plummeted. Now, for good reason, the WWE is going to have to come up with explanations as to why this is happened. The only route the WWE could possibly go to save face is to say they weren't competent enough to make accurate enough projections about their performance. Though that in and of itself is still damaging to the company reputation, it is much better than being found guilty of securities fraud.
One has to wonder though, was Stephanie McMahon throwing barrels of every last piece of WWE stock that she owned into the sea back before the Network launched because SHE KNEW that the stock was going to collapse when the real numbers came out? Hmmm.
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Post by HHH316 on Jul 27, 2014 0:14:13 GMT -5
Seems like the law firm version of an ambulance chaser.
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Post by rustyy on Jul 27, 2014 0:44:29 GMT -5
Maybe if WWE loses and keeps losing money they'll realize they need a better product for people to want to buy a network of it.
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Deleted
Joined on: May 11, 2024 8:48:51 GMT -5
Posts: 0
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Post by Deleted on Jul 27, 2014 7:32:16 GMT -5
Good hopefully they get taken to the cleaners.
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Post by wyleecyotee on Jul 27, 2014 7:46:47 GMT -5
Wait? Please tell me if I'm being an idiot cos law stuff has always gone over my head but this sounds like a company is suing WWE cos E said they'd make them money but it didn't happen?
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Post by Prophet of Ash on Jul 27, 2014 7:53:24 GMT -5
This actually is pretty serious news for the WWE as a company. You won't see a change to the quality of product on TV (or, lack thereof? lol just kidding) of the television show itself, but as a publicly traded entity, the WWE has to abide by certain codes of conduct and federal laws within the SEC (the governing body of the stock market). One of those laws is that the company (WWE) must be truthful in their description of the immediate and long term viability and value of their stock. Now, in context to what I'm saying, stock viability and value is completely hindered upon things like brand awareness, social responsibility, corporate image, contracts, new products, etc, etc. Moving forward, the company should be fully aware and competent enough to not only do the research and discover the true value of their stock, both short and long term, but to also live up to their responsibility of make the stock more valuable, again both short and long term. In this case, the WWE is being sued by a single firm representing anyone who bought or otherwise accumulated WWE stock from October '13 to May '14. The reason is because according to all logic and justification, the WWE blatantly lied to the public about how valuable their stock is going to be in the long term. No, they did not stand at a podium and say, "Our stock is going to be worth 33.23 in May '14" but they said, "The value of our new television contract with USA is worth twice as much as it is now and HEY, WE'LL BE SIGNING THE DEAL IN MAY '14." Not ONLY this, but the WWE also publicly projected that the new "WWE Network" could and should see 1 million subscribers as early as 2nd quarter '14. When is 2nd quarter '14? April, MAY, June. The numbers for the Network were actually embarrassing. Only 600,000 people signed up for their service. As you can see, they seemingly baited their stakeholders into buying WWE stock with a TV contract and a brand new revenue stream in the form of the Network. When those who owned and cared about WWE performance on the stock exchange both for personal and professional purposes finally saw the numbers from the contract with USA and the Network subscribers, the value of the stock plummeted. Now, for good reason, the WWE is going to have to come up with explanations as to why this is happened. The only route the WWE could possibly go to save face is to say they weren't competent enough to make accurate enough projections about their performance. Though that in and of itself is still damaging to the company reputation, it is much better than being found guilty of securities fraud. One has to wonder though, was Stephanie McMahon throwing barrels of every last piece of WWE stock that she owned into the sea back before the Network launched because SHE KNEW that the stock was going to collapse when the real numbers came out? Hmmm. his is the most clear and well thought out post here, and the last line could be a potential insider trading/fraud investigation. Remember what happened with Martha Stuart? it could happen to Steph..
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Post by JC Motors on Jul 27, 2014 9:50:26 GMT -5
David Otunga can get them out of this -sips coffee- Let's hope
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Chief
Main Eventer
Joined on: Apr 21, 2008 15:36:44 GMT -5
Posts: 2,849
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Post by Chief on Jul 27, 2014 19:13:30 GMT -5
WWE did talk a lot of crap when it came to the TV rights deal.
I'm sure they are sweating the Network number on Thursday
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Post by Next Man’s Knowing Rock on Jul 27, 2014 19:37:25 GMT -5
WWE did talk a lot of crap when it came to the TV rights deal. I'm sure they are sweating the Network number on Thursday Apparently it's going to be a big news week. WWE Network number, TNA either getting a new TV deal or announcing cancellation, and some mystery third thing.
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Chief
Main Eventer
Joined on: Apr 21, 2008 15:36:44 GMT -5
Posts: 2,849
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Post by Chief on Jul 27, 2014 19:44:34 GMT -5
WWE did talk a lot of crap when it came to the TV rights deal. I'm sure they are sweating the Network number on Thursday Apparently it's going to be a big news week. WWE Network number, TNA either getting a new TV deal or announcing cancellation, and some mystery third thing. Even though the Network has been years in the making I still feel they rushed it out and didn't think enough about the shape they would be in if things went terribly. Again if they have close to a million subs they are in good shape. If they have under 800k...well then it's time to panic. As a fan I love the 10 price tag and getting to watch all the new PPV'S but I don't think that was the right business move.
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Post by Next Man’s Knowing Rock on Jul 27, 2014 20:17:49 GMT -5
Apparently it's going to be a big news week. WWE Network number, TNA either getting a new TV deal or announcing cancellation, and some mystery third thing. Even though the Network has been years in the making I still feel they rushed it out and didn't think enough about the shape they would be in if things went terribly. Again if they have close to a million subs they are in good shape. If they have under 800k...well then it's time to panic. As a fan I love the 10 price tag and getting to watch all the new PPV'S but I don't think that was the right business move. The thing is too, they're stuck with it now. If they increase the price, they could lose subscribers. And they can never shut it down and go back to $45 for a PPV now we've been getting them for $10. Thursday's going to be pretty interesting.
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Post by Yambag Jones on Jul 27, 2014 20:37:19 GMT -5
This could be REALLY interesting...
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