Vince McMahon, Stephanie McMahon, Triple H (Paul Levesque) and other WWE directors are being sued with claims of selling more than $300 million worth of stock at inflated prices while keeping the public in the dark about the collapse of key Middle East broadcasting deals.
The lawsuit accuses WWE executives of telling investors the company was set to renew an agreement with Orbit Showcase Network in Riyadh. OSN left sports broadcasting, which the lawsuit alleges WWE knew about. The lawsuit also alleges WWE misled investors about the chances of finding a replacement deal once OSN was out.
McMahon 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. Other executives sold stock worth $30 million based on the same inside information.
According to the complaint, the company’s stock price fell from more than $62 a share to $44.50 when the truth about WWE’s “rapidly deteriorating” Middle East business finally emerged.
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.
You can view the lawsuit by clicking here.
Multiple class action lawsuits have been filed against WWE over their business dealings with Saudi Arabia with allegations of WWE making false and misleading claims when it comes to its relationship with the Saudi government.
WWE settled a lawsuit regarding its relationship with Saudi Arabia in November 2020 for $39 million.