Report: WWE Being Sued By Shareholders For Ties To XFL
The lawsuit was filed on December 26th...
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Dec 30, 2019
Since Vince McMahon announced the relaunch of the XFL back in January 2018, he has sold over three million shares in WWE amounting to $370 million. The funds have then been funnelled into Alpha Entertainment, which officially owns the XFL.
Now, according to Jacob Rund at Bloomberg Law,
WWE is being sued by an Oklahoma Firefighters Pension Fund. They filed the lawsuit against the company on December 26th in the Delaware Court Of Chancery. The Pension Fund, which owns shares in WWE, alleges that there is a "credible basis to believe" that senior executives in WWE have diverted resources to the XFL, breaching their duties to shareholders.
The lawsuit also claims that members of WWE's board have failed to conduct appropriate oversight to ensure McMahon did not carry out transactions which conflict with WWE's interests. The Pension Fund is also seeking to gain access to documents relating to WWE's ties to the XFL.
The XFL's first season is set to begin on February 8th. The league will include former NFL players like Quarterbacks Cardale Jones and Landry Jones, and Safety Will Hill.
