Posted on 06/21/2007 6:47:11 PM PDT by gpapa
That is a question asked by Darren Rovell on Sports Biz today, and also one that he asked me in a TV interview that will air on CNBC later today at the following times: 7:50 a.m., 11:30 a.m., and 1:55 p.m., all Eastern Standard Time Zone. I hope you get a chance to watch. The interview will first air on CNBC's morning business show Squawk Box.
McMahon, as you know, is the chairman of World Wrestling Entertainment ("WWE"), and last Monday, WWE claimed that McMahon had been killed when his limo exploded. WWE.com announced that he was presumed dead since no body was recovered, and also claimed that the FBI was investigating, but it was later learned that the event was merely a promotional stunt, like many events that occur in pro wrestling.
WWE is a publicly-traded company, and while it's stock is only down 1.8 percent since the fake death, Rovell analyzes whether investors (as opposed to fans) of WWE may have been affected by the news, particularly since McMahon is listed in the company's most recent annual report as the most important person in the organization, and thus his death would seemingly be of great consequence. Then again, according to the WWE, not one investor has contacted the company to complain. Still, Rule 10b-5, pursuant to Section 10(b) of the Securities and Exchange Act of 1934, prohibits misleading statements or omissions of material fact in connection with the purchase or sale of any security, and that includes press releases that intentionally or, according to most courts, recklessly mislead investors. Both the SEC and private citizens can enforce the requirements of 10b-5. Establishing a claim against the WWE would be difficult, but it's an interesting idea to consider.
I hope you get the chance to watch the interview.
Update: Darren Rovell has put up a transcript of his interview of former SEC regional director Ira Lee Sorkin and me, and also news that Rovell is now considered a suspect for the murder "Mr. McMahon"!
They would have been fine, if they hadn’t used a real press release to further a stupid storyline, thats what is going to get them into trouble.
Gee, I wonder where they EVER got the idea to FAKE something....
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