Lawsuit Filed Against Vince McMahon And WWE For Selling Stock At Inflated Prices, Concealing Information
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Vince McMahon, Stephanie McMahon, Paul Levesque (Triple H), and other WWE directors are the defendants of a recent lawsuit.
The lawsuit claims that the group sold more than $300 million worth of WWE stock at inflated prices, and it withheld crucial information about the breakdown between the company and its Middle East broadcasting partners. The lawsuit goes on to accuse various executives in the company of telling investors that WWE was planning on renewing an agreement with Riyadh’s Orbit Showcase Network, a company that ultimately ended up leaving sports broadcasting.
The issue surrounding the lawsuit seem to stem around the accusation that WWE knew that OSN would be leaving sports broadcasting, and that the company misled investors about the likelihood of finding a replacement. According to the complaint, McMahon sold 3.5 million shares worth more than $280 million based on “nonpublic information regarding the company’s key contracts, business metrics, and financial prospects,” while other executives used this information to sell stock worth approximately $30 million.
This isn’t the first time that WWE has been the recipient of a class-action lawsuit, and not the first time their business relationships with Saudi Arabia have been questioned.
More information about the lawsuit is available here.
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