HeelByNature.com is reader-supported. When you click on links or make purchases through our site, we or our affiliated partners may earn a commission. Additionally, our site features Sponsored Content, which helps us maintain and operate the website.
WWE has settled a lawsuit regarding their business relationship with the Kingdom Of Saudi Arabia.
The company announced today, via SEC filing, a settlement $39 million will be paid to City Of Warren Police and Fire Retirement System, stockholders who lodged a complaint earlier this year.
Related Lawsuit Stories:
- WWE Shoots Down ‘Wrestling Journalists’ In Response To Lawsuit Over Saudi Dealings
- WWE Claims Hostage Story In Saudi Arabia Is ‘Phony’, Discredits ‘Disgruntled’ Released Wrestler
- Class Action Lawsuit Filed Against WWE Claiming ‘Rising Tension’ With Saudi Arabian Government
- Released WWE Wrestler A Confidential Witness In Lawsuit Against Company
- Gallows and Anderson Detail What Happened During WWE Saudi Plane Incident
The lawsuit alleges WWE executives artificially inflated stock prices, sold shares, and failed to disclose failed negotiations regarding a new broadcast deal in Saudi Arabia.
WWE has settled a shareholder lawsuit for $39M. The company issued via SEC Filing. pic.twitter.com/wPMRzFGl8I
— HeelByNature.com (@HeelByNatureYT) November 20, 2020
The following statement was issued.
On November 18, 2020, World Wrestling Entertainment, Inc. (the “Company”) entered into a term sheet (the “Term Sheet”) to settle the previously disclosed action titled City of Warren Police and Fire Retirement System, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., Vincent K. McMahon, George A. Barrios, and Michelle D. Wilson, No. 1:20-cv-02031-JSR, currently pending in the United States District Court for the Southern District of New York (the “Court”). Plaintiffs in the lawsuit alleged securities law violations by the Company, its current Chief Executive Officer and its former Co-Presidents, related to certain disclosures concerning the Company’s business relationship in and with the Kingdom of Saudi Arabia. The Term Sheet was reached in connection with a voluntary mediation which involved the Plaintiffs and their counsel, the Company and its counsel, and the Company’s insurance carriers. Aside from the Term Sheet, there will be other standard and customary terms of class action settlements in the stipulation of settlement. The settlement is subject to notice to the class and preliminary and final approval by the Court.
The settlement will include a full release of all Defendants in connection with the allegations made in the lawsuit, and will not contain any admission of liability or admission as to the validity or truth of any or all allegations or claims by any of the Defendants.
The Term Sheet provides for a settlement payment, subject to Court approval, of $39 million (inclusive of all Plaintiffs’ attorneys fees and expenses and settlement costs), all of which the Company expects will be paid by the Company’s insurance carriers.
The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process.