Top WWE officials including Vince McMahon, Stephanie McMahon, Triple H, and others have been named in a new lawsuit filed against the company for allegedly selling shares at inflated prices. The lawsuit claims that the company executives sold more than $300 million worth of stock while keeping the public in the dark about the collapse of their broadcasting deal in the Middle East.
McMahon and others are accused of telling investors that the promotion was set to renew their broadcasting agreement with Orbit Showcase Network in Riyadh.
OSN shut down all their sports channels back in March 2019 and left sports broadcasting. The lawsuit alleges that the company knew about this change and they also misled investors about the chances of finding a replacement deal once the network was out.
Vince McMahon sold a total of 3.5 million shares worth more than $280 million and other exes sold stock worth more than $30 million allegedly based on “non-public information regarding the company’s key contracts, business metrics, and financial prospects” in the middle eastern region.
The complaint mentions that WWE’s stock prices fell down from $62 to $44.50 a share when the truth about the company’s ‘rapidly deteriorating’ business in the Middle East emerged.
The plaintiff is seeking ‘punitive and actual damages, costs, and fees’ in this lawsuit filed against the top company officials. The cause of action is listed as “breach of fiduciary duty; unjust enrichment; aiding and abetting.”
This isn’t the first instance of the company being sued over their dealings in the country. They previously settled a lawsuit for $39 million regarding their relationship with Saudi Arabia in November 2020.
You can check out the new lawsuit here.
