The WWE has been slapped with a few lawsuits over the past year and it looks like another one could be added to it. According to sources, the company will not only be facing lawsuits over its affiliation with the XFL and Saudi Arabia. Now, more claimants could jump on the bandwagon over trouble with WWE stock.
Considering the current economic climate and the sudden appearance of the coronavirus, it is no wonder that many companies have encountered some problems with their stock value. The WWE is one of the companies who did better than most. Unfortunately, stockholders are still looking for a payday.
Several law firms intend on filing class action lawsuits against the WWE. The basis for the lawsuits is allegedly the stock price drop after the Wilson and Barrios firing. Sources also claim the second stock drop, which took place after the last conference call, as a possible lawsuit basis.
There are currently a couple of lawsuits running against the WWE. One of them was filed by the Oklahoma Firefighters Pension and Retirement Fund.
The claimants currently have concerns about the WWE’s affiliation with the XFL. They believe the resources of the WWE may be used for XFL purposes, which is not in the best interest of the WWE. So, the WWE has to justify its decisions in relation to the XFL to avoid paying damages.
Recently, several WWE stockholders filed another lawsuit against the WWE. This time, there are some concerns about the relationship between World Wrestling Entertainment and Saudi Arabia.
The lawsuit claims that the company has made “false and misleading statements and/or failed to disclose information regarding WWE’s business and operations.” Allegedly, the statement refers to the current tension with the Saudi Arabia government and the associated deal.
Claimants also refer to the fact that the Saudi government has failed to make payments, estimated to be over several millions of dollars. The earlier reported travel issues from Saudi Arabia are also mentioned in the lawsuit. In other words, claimants have lots of ammunition this time around.
Since the WWE is still a powerful company, I doubt these lawsuits will have much of an effect on them. However, the recent release of George Barrios and Michelle Wilson is troublesome. Vince McMahon stated that their release was due to “different views on how best to achieve our strategic priorities moving forward.”
Rumor indicates that Vince wants to invest more in regional NXT divisions, but that Barrios and Wilson weren’t on board. If this is accurate, we should see a growth in the NXT brand in the nearby future. Vince also wants to stockpile free agent wrestlers, but not really use them. Allegedly, Barrios and Wilson did not agree with this either.
Since Barios and Wilson left the WWE, the new direction of the company will become clear very soon. Let’s just hope it’s without too many lawsuits.
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