A lawsuit had been filed by shareholders Ryan Merholz and Melvyn Klein on April 24, 2020 against WWE, Vince McMahon, Stephanie McMahon, Paul Levesque, Frank Riddick III, Stuart Goldfarb, Laureen Ong, Robyn Peterson, Man Jit Singh, Jeffery Speed, Alan Wexler, and George Barrios. They’re claiming that the WWE Executives acted without the best interests of the shareholders in mind.
In a statement released by Merholz & Klein, they said WWE “wasted corporate assets, made false statements, failed to disclose adverse facts, misled the investing public, permitted senior executives of WWE to sell more than $282 million worth of their personally held shares of Company stock at inflated prices, and more”.
In response, WWE released a statement of their own:
STAMFORD, Conn.–(BUSINESS WIRE)– World Wrestling Entertainment, Inc. (NYSE: WWE) The proposed settlement of certain shareholder derivative and other actions, previously disclosed by the Company’s Current Report on Form 8-K, filed August 17, 2021, has received preliminary court approval. The proposed settlement includes no financial obligation on the part of the Company. The attached summary notice constitutes a required notice of the proposed settlement.
