Vince McMahon and other WWE executives sued for selling $300m worth of inflated stock

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3 years ago

WWE Inc. shareholder accuses Vince McMahon and other WWE executives

A World Wrestling Entertainment Inc. shareholder has accused chairman Vince McMahon and other WWE executives in Delaware, claiming many inside the company sold more than $300 million worth of stock at inflated prices.

The company had a $300 million profit last week after Reddit investors helped the surge

The lawsuit was made public on Tuesday, and accused them of telling investors in advance about the renewal with Orbit Showcase Network (OSN) in Riyadh. The finer details of the lawsuit include: (h/t Cultaholic)

Cause of Action: Breach of fiduciary duty; unjust enrichment; aiding and abetting.

Relief: Punitive and actual damages, costs, and fees.

Attorneys: The plaintiff represents Rigrodsky Law PA and Joshua H. Grabar of Philadelphia.

The WWE Chairman McMahon is also accused of selling 3.5 million shares worth more than $280 million over on “nonpublic information regarding the company’s key contracts, business metrics, and financial prospects” in the Middle East region. The region has brought them tremendous success in the last few years thanks to specials.

Among the defendants are WWE Chief Brand Officer Stephanie McMahon and her husband Triple H. The company’s stock has also seen extreme highs and lows falling from $62 to $44.50.

Triple H and Stephanie McMahon are also part of the lawsuit

WWE is welcoming back crowds next month, which could boost their budget. Superstars have been released due to the ongoing budget cuts. The company will be looking to normalise within the calendar year.

Will Saudi Arabia host WWE this year?

Earlier, there were rumours of WWE hosting a live event in Saudi Arabia later this year. But, with the current COVID -19 pandemic, the situation is uncertain. The Kingdom has hosted huge events like WWE Super Showdown and WWE Crown Jewel in the past.

The event also highlighted the welcoming of Superstar, Mansoor. Mansoor made his debut on WWE Raw facing Sheamus for the United States Championship. He has shown his capabilities to be a future star in the business.

It is still unknown if WWE moves to host one of the biggest events in recent history.

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Mario Fernandes