Vince McMahon And WWE Board Members Sued Amid Allegations Of Insider Trading Over Saudi Arabia Deal
WWE's dealings with Saudi Arabia continue to come back to haunt the company, and Vince McMahon, Stephanie McMahon, Triple H, and a number of board members are now being sued after claims of insider trading...
It's been revealed today that WWE shareholder Amer Dastgir has filed a lawsuit against a number of WWE Executives, including Vince McMahon, Stephanie McMahon, Triple H (Paul Levesque), and former co-Presidents George Barrios and Michelle Wilson.
He's accused them of selling more than $300 million worth of stock at inflated prices during a period WWE kept shareholders and the public in the dark about their broadcasting deals in the Middle East falling apart. This lawsuit also alleges that WWE informed investors they would be renewing an agreement with Orbit Showcase Network in Riyadh...despite knowing OSN had stopped broadcasting sports.
As if that wasn't bad enough, Dastgir also argues that WWE misled investors about the chances of finding a replacement. This all came at a time when Vince sold 3.5 million shares for more than $280 million, and it's said he did so based on "nonpublic information regarding the company’s key contracts, business metrics, and financial prospects" in Saudi Arabia.
Additional stock worth around $30 million was also sold based on this inside information, and once the news did come out, WWE's stock prices fell from $62 a share to $44.50.
Needless to say, this is one lawsuit that should definitely be worth keeping an eye on.
