While recent news that there is an investigation regarding possible false and misleading statements, accounting and reporting practices, insider trading, breaches of fiduciary duty, and violations of the federal securities laws by the WWE Board of Directors and officers in the company may surprise many, a law firm actually has been conducting an investigation since April.
The law firm behind the investigation is WeissLaw, a 36+ year old law firm that represents shareholders in securities class and derivative litigation. With offices in New York, California, and Georgia, WeissLaw has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties, recovering over a billion dollars for defrauded clients in the process.
Warner Bros. Discovery
Coincidently, WWE is not the only pro-wrestling-related company that has been under investigation by WeissLaw. In May 2021, they announced that they were investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Discovery Inc. in connection with their agreement with AT&T Inc. to combine WarnerMedia’s entertainment, sports, and news assets with Discovery’s nonfiction and international entertainment and sports businesses to create a standalone global entertainment company. Being that WarnerMedia was the company enabling, “AEW Dynamite” and, “AEW Rampage” to broadcast on TBS and TNT, AEW-TV is a part of this standalone global entertainment company, known as Warner Bros. Discovery. There have not been any comments regarding the investigation made by WeissLaw since last year.
Meanwhile, it has been business as usual at Warner Bros. Discovery, as they are currently setting a cost-cutting plan, with the goal in mind of finding more than $3 billion in savings in 2023. The cuts will slash approximately 30% of their ad sales team, and Warner Bros. Discovery CEO David Zaslav has stated that the company’s ultimate goal is to spend more money on TV shows while slashing the costs of projects with inflated budgets.