WWE In $39 million Approval Settlement over Saudi Arabia Media Dispute.
In an earlier article we posted about how the Saudi Arabia and WWE deal was in trouble, here's an update to that story.
WWE, alongside it's investors, have come to a deal settled in a rather hefty sum of $39million, in regards to the media rights in Saudi Arabia.
WWE are no strangers to class action lawsuits and found themselves with yet another Class Action lawsuit against them which was filed back in March of last year, when investors became suspicious of WWE misleading them in their dealings with KSA.
Bloombergs law attorney, Jennifer Bennett reported that both sides had reached an finalised agreement on Thursday of last week with Judge Jed S. Rakoff of New York Federal Court had given his approval on the deal.
Here's the full report below:
World Wrestling Entertainment Inc. and investors who say it misled them about problems with its business ties to Saudi Arabia secured final approval for their $39 million settlement in federal court in New York.
The cash deal represents about 18.2% of estimated classwide damages, the investors told the U.S. District Court for the Southern District of New York when they sought preliminary approval last year. Judge Jed S. Rakoff gave his final sign off to the settlement in an order docketed Thursday.
The professional wrestling group’s investors in 2020 accused WWE of misleading them about the status of media rights deals in Saudi Arabia. Rakoff rejected WWE’s bid to dismiss the suit later that year and preliminarily approved the settlement in March.
The settlement class consists of everyone who acquired WWE common stock from Feb. 7, 2019, through Feb. 5, 2020, and lost money as a result, with exceptions for those with other close ties to the company, Rakoff’s order said. There weren’t any objections to the settlement.
Lead counsel Labaton Sucharow LLP will get $7.02 million—18% of the settlement fund—in attorneys’ fees, Rakoff said in a separate order docketed Thursday. The firm will also get more than $468,000 as reimbursement for litigation expenses.
The pension fund representing the investors as lead plaintiff—Firefighters’ Pension System of the City of Kansas City, Missouri Trust—will get more than $6,200 as reimbursement of its reasonable costs and expenses, Rakoff said.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Day Pitney LLP represented WWE, which didn’t admit any fault.
The case is City of Warren Police & Fire Ret. Sys. v. World Wrestling Entm’t Inc., S.D.N.Y., No. 1:20-cv-02031, orders docketed 7/1/21.
What are you're thoughts on the whole ordeal? Let us know in the comments!