Vince McMahon & More Sued For Selling WWE Stock While Not Disclosing Middle East TV Deal Issues

Posted By James Walsh on 06/16/21

A lawsuit has been filed against Vince McMahon, Stephanie McMahon, Triple H and more for selling WWE stock while not disclosing how their Middle Eastern TV deals were falling apart. Fightful reports that a lawsuit was filed against the McMahons, Triple H, former WWE Co-Presidents George A. Barrios and Michelle D. Wilson, and more over allegations that they sold over $300 million of stock at inflated prices while telling investers a renewal of their agreemnt with Riyadh’s Orvit Showcase Network was imminent.

The issue is that OSN left the sports broadcasting field and the lawsuit claims that WWE knew it was happening. It further alleges that WWE misled the investors about how likely they were to find a replacement broadcasting deal once their deal OSN was done. During this time, Vince McMahon sold 3.5 million shares with over $280 million, which the lawsuit alleges was done based on “nonpublic information regarding the company’s key contracts, business metrics, and financial prospects” in the Middle East. The other executives allegedly sold $30 million of stock for the same reason.

When the news of the deal falling through came about, the suit says WWE’s stock dropped from over $62 to $44.50. It alleges that there was “Breach of fiduciary duty; unjust enrichment; aiding and abetting.” The plantiff in the case is asking for “punitive and actual damages, costs, and fees.”