WWE $39M Settlement Over Securities
The WWE has agreed to compensate $39 million to investors who claim the entertainment company misled them about its commercial transactions in Saudi Arabia.
WWE’s Alleged Defrauding of Investors
WWE has officially settled a class-action lawsuit filed by investors alleging that the corporation misled them over its dealings with the Kingdom of Saudi Arabia.
Since an aircraft carrying the wrestlers was obliged to remain in the nation following Crown Jewel in 2019, the Middle East’s promotion issues have been considerable.
The lawsuit, filed last year in March, accused WWE executives of defrauding investors on their commercial ventures in Saudi Arabia, boosting the company stock, and fraudulently selling more than $280 million worth of shares at inflated prices.
It was combined by six different legal firms and comprised numerous separate lawsuits.
Additionally, WWE officials were charged with failing to disclose that arrangements with Saudi Arabia for a Middle Eastern television deal had not been completed. Due to a lack of clarity, investors believed the contrary, resulting in a spike in the company’s stock.
WWE Denies the Issue
WWE announced a settlement on Monday, August 16, according to a recent SEC filing. They reject all of the claims stated in the class action lawsuit; but, they believe that settling the lawsuit in line with the settlement agreement’s provisions is the best course of action.
WWE Securities Settlement, 2021
The settlement agreement would include, among other things, a complete release of all defendants from all allegations made in the actions and would not include any admission of liability or admission regarding the legitimacy or truth of any or all allegations or claims made by defendants.
Additionally, the settlement would require the company to develop and maintain specific corporate governance measures. The plaintiffs have expressed an intent to pursue payment of their attorneys’ fees, case contribution awards, and reimbursement of expenses, all of which would be provided by the company’s insurance carriers as part of the settlement.
As per Wrestling Inc., the settlement amount accounts for approximately 18.2 percent of the class’s assessed damages. The settlement class covers anyone who purchased WWE common shares between February 7, 2019, and February 5, 2020, and suffered a loss.
The class action’s lead counsel will receive $7.02 million in attorney’s fees or 18% of the settlement amount.
Wrestling Inc. said that the pension fund representing the stockholders as the lead plaintiff would obtain more than $6,200 in fees and expenses reimbursement.
Editor’s Note on WWE Securities Settlement For $39 Million:
This article is written to inform you of the class action settlement of WWE over defrauding its investors. A similar class action lawsuit was filed against aviation company Virgin Galactic after they allegedly lied about their securities.
Case Name & No.: City of Warren Police and Fire Retirement System vs. World Wrestling Entertainment, Inc., No. 1:20-cv-02031-JSR
Jurisdiction: The United States District Court for the Southern District of New York
Allegations: WWE allegedly misled investors about its commercial ventures in Saudi Arabia, thus resulting in its stock price to spike
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