Published 13:10 IST, April 29th 2020
WWE officials including Vince McMahon, Triple H hit with lawsuits citing fraudulent scheme
WWE has landed in hot water with their shareholders with reports in the US indicating several class-action lawsuits have been filed against the company.
- SportFit
- 3 min read
WWE has reportedly landed in hot water with its shareholders with reports in the United States indicating several class-action lawsuits have been filed against WWE and some of their top officials. Multiple lawsuits from some of the top law firms on behalf of the WWE shareholders have reportedly been filed against Chairman Vince McMahon and other executives including Stephanie McMahon, Triple H, Stuart Goldfarb, Frank Riddick III, Man Jit Singh, Jeffery Speed, Alan Wexler, and George Barrios.
WWE lawsuits: Several class-action lawsuits filed by WWE shareholders
One of the lawsuits filed by The Gross Law Firm accuses the company of making 'false and/or misleading statements and/or failing to disclose' some vital information from the company's financial dealings over the past year. Most of the accusations are made by shareholders who bought stakes in the company between February 2019 and February 2020.
According to the law firm's press release, some of the accusations made by the WWE shareholders are - deceiving the investing public regarding WWE’s business and prospects, artificially inflating the price of WWE Class A common stock, permitting certain senior executives of WWE to sell more than $282 million worth of their personal shares at fraud inflated prices and causing the public to purchase WWE Class A common stock at artificially inflated prices.
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Similar WWE lawsuits have been filed across the United States which allegedly claim WWE's financial dealings with Saudi Arabia have been the primary reason behind the falling stock prices and the company has been accused of hiding the details of its deal with the Kingdom of Saudi Arabia.
The press release by The Glancy Prongay & Murray law firm states, "On April 25, 2019, WWE reported that for first quarter 2019, revenue declined year-over-year, notably in the live events and consumer products segments. Though the Company attributed the decline to the absence of certain "Super Stars," several analysts connected the results to difficulties securing a media rights deal for the Middle East and North Africa ("MENA") region with the Kingdom of Saudi Arabia."
The same statement explains how WWE's stock price, which stood at $85.38 per share in April 2019, fell to just over $44 per share in February. Most of the shareholders who invested in the company during that period are bracing for an enormous loss. WWE is yet to make a public comment in regards to the growing number of lawsuits filed against them.
Updated 13:10 IST, April 29th 2020