WWE filed a motion to dismiss a lawsuit against them which claimed the company violated the Security Exchange Act by making false and misleading statements regarding their relationship with Saudi Arabia. The lawsuit stated WWE failed to disclose potential negative information which led people to purchase stock at artificially inflated prices.
According to Dave Meltzer of the Wrestling Observer, the judge has denied WWE's motion.
Judge Jed Rakoff of U.S. District Court in the Southern District of New York wrote, “Ultimately, none of defendants’ numerous arguments succeeds. Basically, this is because the complaint, while not a model of clarity, adequately alleges an overall claim of securities fraud that is not only plausible, but also complies with the relevant heightened pleading requirements applicable to this kind of action. While defendants have trotted out a virtual herd of objections to the (lawsuit), on close inspection, none is a winner.“
In other lawsuit news, Shane McMahon was named in a lawsuit against Ideanomics. Shane serves as Vice Chairman of the Board.
The lawsuit, filed by shareholders, accuses Ideanomics of breaching their fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and a violation of the Section 14(a) of the Securities Exchange Act of 1934. Shane loaned the company $3 million at one point, and how he owned around $2.1 million worth of company stock as of November 2019.
Shane returned to WWE television this past Monday, introducing Raw Underground.