WWE recently filed a motion to have a lawsuit against them dismissed, only to have their motion denied.
The suit contends that WWE violated the Security Exchange Act by making false and misleading statements regarding the company's relationship with Saudi Arabia.
Judge Jed Rakoff of U.S. District Court in New York's southern district, "...accepted there was enough in the allegations to be true under the rules that govern motions to dismiss," according to a summary of the denial from this week's Wrestling Observer Newsletter.
The account quotes Rakoff as saying, "Ultimately, none of defendants’ numerous arguments succeeds. Basically, this is because the complaint, while not a model of clarity, adequately alleges an overall claim of securities fraud that is not only plausible, but also complies with the relevant heightened pleading requirements applicable to this kind of action.”
Rakoff added, “While defendants have trotted out a virtual herd of objections to the (lawsuit), on close inspection, none is a winner.”
The lawsuit was filed in March by the Warren Police and Fire Retirement System (a Michigan-based pension fund), against defendants WWE, Vince McMahon, and former company officers George Barrios and Michelle Wilson.