PWInsider - WWE News, Wrestling News, WWE

WWE SHAREHOLDER LAWSUIT SETTLEMENT REACHED

As we noted last week,  the trial for the lawsuit filed in Delaware by WWE shareholders against Vince McMahon, WWE President Nick Khan and other current and former WWE execs was removed from the court docket for this week in Delaware.    The two sides have come to terms on a "general outline for a settlement" and will be bringing it before the court for approval.

The lawsuit, brought by several shareholders, alleges that when McMahon made the decision to sell WWE, the process was manipulated to take the offer from Endeavor to insure he would be able to remain with the company despite the scandal that led to his exit as an exec, thus depriving shareholders of the best possible price for WWE on the open market.  TKO, who now owns WWE, was not a party to the lawsuit.

However, several current and former WWE execs, including Vince McMahon, could have been on the hook for massive financial damages if the lawsuit did not go their way - and had already been sanctioned by the court for their inability to bring forth certain material from that time period due to the use of Signal, a messaging app that deletes messages.    The sanctions would have made it far harder for the defendants to defend against the allegations that the sale was manipulated to appease McMahon, who was seeking to return to WWE in an executive role.  

There were a number of other potential suitors for the company, including AEW owner Tony Khan.

 

If you enjoy PWInsider.com you can check out the AD-FREE PWInsider Elite section, which features exclusive audio updates, news, our critically acclaimed podcasts, interviews and more by clicking here!

• Tweet