Investors lawsuit filed against WWE
Another lawsuit has been filed against WWE in regards to not disclosing broadcasting deals with Saudi Arabia and the rest of the Middle East.
Directors of WWE including Vince McMahon, Stephanie McMahon, and Triple H are allegedly being accused of renewing a deal with Orbit Showcase Network (OSN) in Riyadh, whilst being fully aware that the broadcaster will not be broadcasting sporting events in the future therefore will not be renewing the deal after all.
The alleged report also states that WWE had misled the investors in signing a replacement deal once OSN had departed.
Another issue to add to this however is that WWE had sold in excess of 300 million shares worth of stock whilst withholding information, which would've affected the pricing of the overall stock.
To show the extent of the situation, the lawsuit went on to say that the overall price of the stock had fallen from $62 a share to $44.50 a share, once the truth came out about WWE's deception.
The lawsuit has been filed as a "Breach of fiduciary duty; unjust enrichment; aiding and abetting”. The plaintiff is seeking “punitive and actual damages, costs, and fees” in relief.
This is the second lawsuit that has been filed against WWE regarding the Middle East and Saudi Arabia, with the last lawsuit settled last November for approximately $40 million.
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