New Lawsuit Filed Against Vince McMahon and Other Top WWE Executives

A new class-action lawsuit reportedly has recently been filed against Vince McMahon and other top level WWE executives, according to HeelByNature.com.

It was reported that this new class-action lawsuit was filed on April 24th by WWE shareholders Ryan Merholz and Melvyn on behalf of the company’s shareholders. This lawsuit alleges that Vince McMahon, Stephanie McMahon, Paul “Triple H” Levesque, and other high level WWE executives were involved in a number of acts that were not to be the best interest of the company.

Among the allegations in the lawsuit’s filing were claims of WWE executives violating Section 10(b) of the Securities Exchange Act of 1934 between February 2019 to the present, purposely made misleading statements regarding the company’s business and prospects, and senior executives selling more than $282 million worth of their personal company shares at artificially inflated prices.

The lawsuit also included issues regarding the company’s current financial deal with the Saudi Arabian government.

Portion of the lawsuit filed:

“The Company’s most senior executives and directors took advantage of WWE’s inflated stock price to sell millions of dollars’ worth of their own WWE shares during this time period. In a single stock sale on March 27, 2019, WWE’s Chief Executive Officer (“CEO”) and Chairman of the Board, Defendant V. McMahon, sold more than 3.2 million WWE shares for over $261 million in proceeds. This sale occurred when there were only a few days left in the Company’s 2019 first quarter which insiders knew was experiencing poor financial performance and despite growing behind-the-scenes problems with the Saudis.”

“WWE held the Crown Jewel live event in Riyadh, Saudi Arabia. After the event ended, shocking news reports surfaced claiming that the Saudi government was effectively holding a number of WWE wrestlers “hostage” in retaliation for McMahon’s decision to delay a live broadcast of Crown Jewel until the Saudis made tens of millions of dollars in past due payments. Estimates for the amount outstanding ranged from $60 million to as much as $500 million. Several wrestlers detailed their experience during the ordeal on social media platforms”