WWE has settled a class-action lawsuit brought against them for allegedly deceiving investors over their Saudi Arabia business dealings.
In an SEC filing by WWE, the company revealed that they had closed a class-action lawsuit filed against them by the City of Warren, Michigan Police & Fire Retirement System. The suit was closed with a $39 million settlement.
The suit was filed in March and alleged that WWE executives had deceived investors over their business dealings with the Kingdom of Saudi Arabia.
It alleged that the executives had inflated company stock and sold more than $280 million worth of shares at inflated prices.
The suit alleges that the executives didn’t disclose the fact that WWE’s business agreements with Saudi for a Middle Eastern TV deal hadn’t been consummated. Because of this, the company caused its stock to rise when it shouldn’t have.
WWE issued the following statement with the SEC filing.
“The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process.”
Wrestling Inc has put up a full copy of the SEC filing, which you can see here.