WWE And Vince McMahon Get Approval For MASSIVE Settlement Following Allegations Of Insider Trading

WWE And Vince McMahon Get Approval For MASSIVE Settlement Following Allegations Of Insider Trading

We recently told you that WWE had been accused of insider trading after artificially inflating stock prices by not disclosing failed negotiations in Saudi Arabia, but the company has now settled the lawsuit.

By JoshWilding - Jul 06, 2021 04:07 AM EST
Filed Under: WWE
Source: Bloomberg Law

We recently told you that WWE had found itself in the midst of a legal battle with shareholders after they alleged that executives (including Vince McMahon, Stephanie McMahon, and Paul "Triple H" Leveque) had artificially inflated the company's stock by failing to disclose that negotiations with the Saudi Arabian government over TV deals in the country had fallen apart. 

With stock prices larger than normal, the Firefighters; Pension System of the Kansas City, Missouri Trust claimed that WWE knew they wouldn't be able to expand in that region (despite claiming otherwise to investors) and that McMahon and others then sold more than $280 million of their shares at "fraud inflated prices."

Now, it's been confirmed that WWE has dealt with the matter by receiving approval from a judge to move forward with a $39 million settlement. 

This deal represents around 18.2% of estimated classwide damages, so WWE has been hit hard by this. 

It's worth noting that WWE hasn't admitted to any fault following the allegations, but this judge previously rejected WWE's bid to dismiss the lawsuit in late 2020. This settlement includes everyone who acquired WWE common stock from February 7, 2019 through February 5, 2020, and lost money, as a result. 

We'll obviously keep you updated as and when more details are revealed about this situation as it develops.

About The Author:
JoshWilding
Member Since 3/13/2009
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