According to Business Wire, a new lawsuit has been announced against WWE by Robbins Geller Rudman & Dowd LLP regarding recent maneuvers made by the company that caused the stock to plummet. Reports are that WWE’s relationship with Saudi Arabia is also being brought into the case.
Allegations are that WWE “”made false and misleading statements and/or failed to disclose adverse information regarding WWE’s business and operations. Specifically, defendants failed to disclose that WWE was experiencing rising tension with the Saudi government and a breakdown in negotiations over a renewed broadcasting distribution deal; that the Saudi government and its affiliates had failed to make millions of dollars in payments owed to WWE pursuant to existing contractual commitments between the parties.”
Along with other events documented in the lawsuit, including the sudden exits of CO-Presidents Michelle Wilson and George Barrios, the WWE stock fell from $100 per share to $40.24 back in February.
There was a separate lawsuit filed against WWE back in December from the Oklahoma Firefighters pension fun. They claimed that Vince McMahon and other senior officials were more focused on the upcoming XFL relaunch and not paying attention to their normal stockholder duties in WWE.
We’ll keep you updated.
