A number of lawsuits have been filed against WWE and its executives including Vince McMahon, Triple H, Stephanie McMahon, George Barrios and others.
The suits, filed by multiple law firms on behalf of different shareholders are accusing the officials of sharing misleading information, artificially inflating the price of Class A common stocks of the company and allowing executives to sell them at inflated prices.
The filings also mention WWE’s deal with the Sports Authority Of Saudi Arabia and the travel debacle the company faced last year after the Crown Jewel PPV.
The lawsuits have been filed by numerous firms including Ryan Merholz and Melvyn Klein, Kessler Topaz Meltzer & Check, The Levi & Korsinsky firm, The Glancy Prongay & Murray firm, The Gross Law Firm. A press release from one of the firms reads like this:
“A class action has commenced on behalf of certain shareholders in World Wrestling Entertainment, Inc. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: Defendants perpetrated a fraudulent scheme which: (i) deceived the investing public regarding WWE’s business and prospects; (ii) artificially inflated the price of WWE Class A common stock; (iii) permitted certain senior executives of WWE to sell more than $282 million worth of their personally held shares at fraud inflated prices; and (iv) caused the public to purchase WWE Class A common stock at artificially inflated prices.”
The company is yet to respond to any of the allegations or make a public comment on the suits. We will keep you posted on the matter.
