Saudi Arabia Lawsuit Update Following WWE’s Q2 Financial Filing, DraftKings, XFL


WWE’s 10-Q quarterly filing with the SEC detailing their financial performance has provided an update on the Saudi Arabia-related lawsuits filed against them, plus more. WWE announced their financial results, and their 10-Q filing, which is public at their corporate site, has some more information.

WWE has been hit with lawsuits alleging that they have violated the Security Exchange Act by making false and misleading statements regarding their relationship with Saudi Arabia, specifically that they failed to disclose potential negative information which led people to purchasers stock at artificially inflated prices. The filing notes all the previous information, including the consolidation of two of the lawsuits and WWE’s motion to dismiss the result, which was a class action lawsuit from the City of Warren Police and Fire Retirement System.

Also Check Out: Hugo Savinovich Reveals More Details Behind WWE-Saudi Arabia Claims

The statement notes that WWE filed a Rule 11 motion for sanctions back in May on the attorneys for the lawsuit due to “false allegations in the originally filed complaint,” which led to the original complaint being dismissed and an amended suit to be filed in June 8th. That is the one that WWE filed a motion to dismiss entirely, and the court has scheduled an oral argument on the motion for July 30th.

In addition, it was noted that “three purported shareholder derivative suits have been filed against [WWE’s] Board of Directors patterned after the securities class action complaints filed in the U.S. District Court for the Southern District of New York.” These suits have also had Rule 11 motions filed against them, and amended complaints filed. WWE moved to consolidate those lawsuits on July 2nd, and scheduled to file motions to dismiss the complaints on August 7th.

The filing notes WWE received common stock of online fantasy sports/betting platform DraftKings, which began trading as a public company on April 24th, in exchange for common shares the company owned.

Alpha Entertainment, LLC, the company created by Vince McMahon for the administration of the XFL, was billed by WWE as follows:

“During the three and six months ended June 30, 2020 and 2019, the Company billed Alpha $130 and $837, and $948 and $2,154, respectively, for services rendered under the support services agreement. On April 13, 2020, Alpha filed for Chapter 11 bankruptcy. As of June 30, 2020 and December 31, 2019, the Company had $541 and $236, respectively, of current receivables for amounts billed to Alpha.”

Trending Stories