Vince McMahon hasn’t been having the best run as of late, as WWE recently made some budget cuts, and the XFL was forced to close its doors due to the coronavirus pandemic.
Following news of the XFL shutting down, it was reported that former Commissioner and CEO Oliver Luck is suing Vince McMahon for wrongful termination. Now it seems that another lawsuit has been filed against McMahon and WWE.
Heel By Nature reports that company shareholders Ryan Merholz and Melvyn Klein have filed a lawsuit against WWE, Vince McMahon, Stephanie McMahon, Paul Levesque, Frank Riddick III, Stuart Goldfarb, Laureen Ong, Robyn Peterson, Man Jit Singh, Jeffery Speed, Alan Wexler, and George Barrios.
The 44 page lawsuit, which was filed on April 24 alleges that WWE executives took actions without the best interest of their shareholders in mind.
The lawsuit alleges that WWE executives made “false statements” and failed “to disclose adverse facts known to them” about the company. There are also allegations that the company artificially inflated the price of WWE securities, and permitted certain executives to sell their stocks at inflated prices.
The lawsuit also made reference to WWE talents being held “hostage” in Saudi Arabia, and allege the following:
“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”
WWE has yet to comment on the lawsuit. Stay tuned for updates.
