In amongst all the drama and difficulties of the current climate, WWE are now facing a lawsuit filed by two of the company’s leading shareholders – Ryan Merholz and Melvyn Klein – claiming that the top executives took actions that didn’t have their best interests in mind. Their 44 page claim details “false statements” and “failures to disclose adverse facts” over the past year, mainly citing the incident in Saudi Arabia following Crown Jewel.
Further details are covered extensively in their claim:
“The Company’s most senior executives and directors took advantage of WWE’s inflated stock price to sell millions of dollars’ worth of their own WWE shares during this time period. In a single stock sale on March 27, 2019, WWE’s Chief Executive Officer (“CEO”) and Chairman of the Board, Defendant V. McMahon, sold more than 3.2 million WWE shares for over $261 million in proceeds. This sale occurred when there were only a few days left in the Company’s 2019 first quarter which insiders knew was experiencing poor financial performance and despite growing behind-the-scenes problems with the Saudis.”
“WWE held the Crown Jewel live event in Riyadh, Saudi Arabia. After the event ended, shocking news reports surfaced claiming that the Saudi government was effectively holding a number of WWE wrestlers “hostage” in retaliation for McMahon’s decision to delay a live broadcast of Crown Jewel until the Saudis made tens of millions of dollars in past due payments. Estimates for the amount outstanding ranged from $60 million to as much as $500 million. Several wrestlers detailed their experience during the ordeal on social media platforms”
With struggles now developing from within the company itself, who knows how WWE will continue to handle business going forward throughout this pandemic. This of course manifests shortly after significant staff cuts to avoid financial difficulties, releasing a handful of long-term employees that has today continued with the release of Cain Velasquez.
We hope that this lawsuit spurs Vince McMahon, and the rest of WWE’s top brass, to begin considering the best interests of all their workers and start conducting business in a more honest and open manner.
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