The WWE and Vince McMahon are being taken to court for alleged insider trading during their Saudi Arabia deal. This lands the company in hot water once again.
The Court Case
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Vince McMahon and a number of WWE board members are being sued over alleged insider trading in their Saudi Arabia deal. This court case is just another in a slew of others that have been brought over the past five years.
A WWE shareholder Amer Dastgir filed a lawsuit against numerous executives including Vince and Stephanie McMahon as well as Triple H.
Other people named in the lawsuit are co-presidents George Barrios and Michelle Wilson.
The shareholder accuses them of selling $300 million in stock at inflated prices. He claims the public were kept in the dark when the Saudi Arabia deal fell through.
According to Dastgir, certain promises were made. This included a renewal of Orbit Showcase in Riyadh.
However, Dastgir claims the company was aware the deal fell through at time of the sale. He also made a number of other claims.
Dastgir claims the WWE misled investors on numerous occasions. Naturally, the biggest accusation is that of insider trading.
While it is known the persons involved sold stock at one point, it is not clear if they did so with insider knowledge. However, this is not the first time the WWE has fought off lawsuits.
Previous Lawsuits
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The WWE encountered numerous lawsuits in the past. While they rebuffed most of them, some they actually lost.
One of the lawsuits the WWE lost miserably was filed by the widow of Owen Hart. In 1999, she filed a wrongful death lawsuit against WWE.
In 2000, the WWE could not rebuff the lawsuit and was forced to settle for $18 million. With the money, she started a foundation in Owen’s name.
Another lawsuit the WWE did not win was against Brock Lesnar. Brock wanted out of his contract in 2004, but the WWE would not let him.
The WWE and Brock Lesnar eventually came to an agreement.
A more recent lawsuit was filed by the Warren Police and Fire Retirement System. They accused the company of selling stock at inflated prices.
There were some wrestlers who ended up testifying against the company. The lawsuit was settled for a whopping $39 million.
Popular WWE legend Ultimate Warrior also filed a lawsuit against the company. In his case, he sued the company for his name and gimmick.
The judge eventually ruled in favor of Ultimate Warrior. Afterwards, the WWE released their revenge in the form of “The Self Destruction of the Ultimate Warrior.”
When Ultimate Warrior sued the WWE again, the case was dismissed. So, it seems they won in the end.
The WWE has a long track record of lawsuits that ranges back decades. So, they certainly have a good team of lawyers to back them up.
Considering the previous “inflated prices” lawsuit, history seems to be repeating itself. We wonder if the WWE will rebuff or settle this time around.
Maybe it is time for the company to take a more thorough look at its business practices.
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