WWE Execs Face Investigation for Insider Trading Concerning Failed Saudi Deal

Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of World Wrestling Entertainment, Inc. (NYSE: WWE) related to the company’s statements regarding a failed media partnership with the government of Saudi Arabia and potentially unlawful insider trading by top executives.

Between approximately February 7, 2019 and February 5, 2020, investors allege that WWE misled them regarding the cancellation of a lucrative media-rights agreement in the Middle East and North Africa region and the failure of an important $500 million partnership with the Saudi General Sports Authority which, unbeknownst to shareholders, was actually broken beyond repair. WWE’s share price plummeted when the company finally revealed the truth.

Investors further allege that three top WWE executives – including Chairman Vince McMahon – collectively sold more than $280 million in company stock before the truth came out.

A securities class action pending against the company in the U.S. District Court for the Southern District of New York has survived a motion to dismiss, paving the way for full discovery.

The Schubert Firm is investigating shareholder derivative claims based on the harm the company has suffered as a result of these potential breaches of fiduciary duty by WWE’s officers and directors.

If you currently own stock in WWE and wish to obtain additional information—or would like to participate in a potential shareholder derivative action—please complete the form below for a free legal consultation.