Cokeboy Sued (Again) for Insider Trading

[MenacingMonk]

BleedingCool:

WWE is the subject of yet another lawsuit from its own shareholders alleging the company made false statements about its financial prospects and executives sold stock for inflated prices ahead of known poor financial reports that would drive down costs and amidst problems with the Saudi Arabian government, which WWE had touted as key to its financial success. The lawsuit was filed by Ryan Merholz and Melvyn Klein against WWE, Vince McMahon, Stephanie McMahon, Paul Levesque, Frank Riddikk III, Stuart Goldfarb, Laureen Ong, Robyn Peterson, Man Jit Singh, Jeffery Speed, Alan Wexler, and George Barrios, and Heel by Nature obtained a copy and posted it on their website. The 44-page lawsuit reads:

This is a shareholder derivative action brought in the right, and for the benefit, of WWE against certain of its officers and directors seeking to remedy the Individual Defendants' (defined below) breach of fiduciary duties, waste of corporate assets, unjust enrichment, and violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") that occurred between February 7, 2019 through the present (the "Relevant Period ") and have caused substantial harm to the Company.

Amongst the claims made by the lawsuit is that WWE entered into its controversial Saudi Arabia agreement, which caused a backlash amongst the company's own fans, some of its wrestlers, and the media in general, which has negatively covered WWE's involvement with the Saudi regime. It also cites tensions between the Saudis and WWE that ultimately led to an incident last year where talent were effectively held hostage in the country after a dispute over live broadcast rights. Amidst all of this, the suit claims WWE executives sold stock at inflated prices ahead of disappointing financial reports, which caused share prices to fall drastically.

As a result of these disclosures, the price of WWE stock dropped from a high ofmore than $100 per share to as low as $40.24 per share on February 6, 2020, representing a 60%share price decline. However, the Company's most senior executives and directors took advantageof WWE's inflated stock price to sell millions of dollars' worth of their own WWE shares duringthis 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 WWEshares for over $261 million in proceeds. This sale occurred when there were only a few days leftin the Company's 2019 first quarter which insiders knew was experiencing poor financial performance and despite growing behind-the-scenes problems with the Saudis.

The sale of 3.2 million shares by Vince McMahon was money McMahon used to launch the XFL, which recently declared bankruptcy and is the target of a lawsuit of its own by ex-commissioner Oliver Luck. In the XFL bankruptcy filing, it was revealed that WWE owned a percentage of XFL shares despite denials. WWE resources being used for the XFL were the subject of another lawsuit by WWE shareholders last year that was later dropped.

Bleeding Cool reached out to WWE for comment on the lawsuit and will update you if we hear back.

 

[Norrin Radd]

Winter really came for House McMahon this year huh.

 

[LastManStanding]

 

[DoubleJ13]

Imagine going to court with WWE & bringing up shyt like them being held hostage in Saudi with no proof of that even being what happened because the dirtsheets, a former Spanish announcer who hasn't worked there in years, & irritated wrestlers dealing with a flight delay made angry social media posts turned it into a giant conspiracy


Also at all these lawsuits

 

[Vic Damone. Jr]

 

[MightyHealthy]

Imagine going to court with WWE & bringing up shyt like them being held hostage in Saudi with no proof of that even being what happened because the dirtsheets, a former Spanish announcer who hasn't worked there in years, & irritated wrestlers dealing with a flight delay made angry social media posts turned it into a giant conspiracy


Also at all these lawsuits

Imagine being on the side of WWE's lawyers in any hypothetical.

Carnies gonna carny.

 

[DamienWayne]

This might be the year Vince gets outta here

 

[Toe Jay Simpson]

This might be the year Vince gets outta here

2020 is on a mission

 

[Reality Check]

Imagine going to court with WWE & bringing up shyt like them being held hostage in Saudi with no proof of that even being what happened because the dirtsheets, a former Spanish announcer who hasn't worked there in years, & irritated wrestlers dealing with a flight delay made angry social media posts turned it into a giant conspiracy


Also at all these lawsuits

Better yet imagine Meltzer on the witness stand trying to Double Talk everything

 

[NYChase718]

Better yet imagine Meltzer on the witness stand trying to Double Talk everything

Hes goin down for perjury while everyone else is exonerated

 

[The Rainmaker]

This might be the year Vince gets outta here

We say that every time, and every time he falls on his feet, like the devil's cat

 

[The Intergalactic Koala]

2019:

"I beat the steroid case, God, made a billi, my pal Trump supplying the bag, Fox deal giving me money for doing bullshyt, and Roman Reigns got a bod...I am Americana, nothing can stop me goddammit"

2020:

"fukk...:

 

[Max.]

Better yet imagine Meltzer on the witness stand trying to Double Talk everything

Well umm...ya know...um.. vince...um was in saudi on a plane...um....they held a bazooka to HHH head...um ya know

 

[jackswstd]

He wanted it to be a publicly traded company, shareholders have to be placated.

 

[Yayo Toure]

smh why was I not e-mailed about this.

I made and lost a few G's on their stock last year.