Lawsuit Filed Against WWE For Allegedly Misleading Investors Regarding Saudi Arabia Business

1 year ago by Taylor Sanchez

Lawsuit Filed Against WWE For Allegedly Misleading Investors Regarding Saudi Arabia Business

A new lawsuit has been filed against WWE for allegedly failing to disclose information about the collapse of Middle East broadcasting deals.

Vince McMahon, Stephanie McMahon, Triple H and other WWE directors are being accused of telling investors that they were renewing a deal with Orbit Showcase Network (OSN) in Riyadh, while allegedly knowing OSN was leaving sports broadcasting so they wouldn’t be able to renew the deal.

The lawsuit also alleges WWE misled investors about the possibility of signing a replacement deal once OSN was out of the question.

The gripe is that WWE sold more than $300 million worth of stock while allegedly keeping this information hidden, which would not have been at as high a price as it was if WWE had disclosed the situation.

To give evidence of this, the lawsuit states that WWE’s stock fell from over $62 per share to $44.50 per share when the “truth” about WWE’s “rapidly deteriotating” dealings with Saudi emerged.

The cause of action is listed on the complaint as “Breach of fiduciary duty; unjust enrichment; aiding and abetting”. The plaintiff is seeking “punitive and actual damages, costs, and fees” in relief.

This is not the first lawsuit that has been filed against WWE regarding Saudi Arabia business dealings, with a similar one having been settled this past November for nearly $40 million.

You can read the lawsuit here.

Via Fightful.

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