As per the reports WWE Chairman Vince McMahon, Stephanie McMahon, Triple H (Paul Levesque) and other WWE directors are being sued.
There have been claims of selling more than $300 million worth of stock at inflated prices as they allegedly kept the public in the dark about the collapse of key Middle East broadcasting deals.
Vince McMahon is in trouble?
The lawsuit has accused the WWE executives that they had stated the investors about renewal of an agreement with Orbit Showcase Network in Riyadh. OSN left sports broadcasting, which the lawsuit alleges WWE knew about. Stephanie McMahon Drops Ronda Rousey Bombshell
The lawsuit also alleged WWE misled investors about the chances of finding a replacement deal once OSN was out.
It is being reported that Vince had sold 3.5 million shares worth more than $280 million allegedly based on “nonpublic information regarding the company’s key contracts, business metrics, and financial prospects” in the increasingly “critical” Middle East region.
While, other executives sold stock worth $30 million based on the same inside information.
The reports state that the company’s stock price saw a dip from more than $62 a share to $44.50 when the truth about WWE’s “rapidly deteriorating” Middle East business finally came up.
It has been noted that the cause of action is listed as “Breach of fiduciary duty; unjust enrichment; aiding and abetting” with the plaintiff seeking “punitive and actual damages, costs, and fees” in relief.
Multiple class action lawsuits have been filed against WWE about their dealings in the business with Saudi Arabia. The allegations state WWE made false and misleading claims when it came about its relationship with the Saudi government.
WWE recently settled a lawsuit regarding its relationship with Saudi Arabia back in November 2020 for $39 million.
