Posted on 6/08/126 by Colin Vassallo
The parties in the WWE shareholders lawsuit have reached an
agreement in principle and managed to settle this out of
court, just a few days before the trial was set to start
today.
The two sides will now present the settlement to the court
where it has to be approved by the judge but at their
request, the trial is canceled.
The lawsuit was seeking hundreds of millions in dollars in
damages after shareholders accused WWE of discarding other
potential bidders in favor of a deal with Endeavor which led
to the creation of TKO.
The suit claims that Vince McMahon only chose Endeavor and
his friend Ari Emanuel because he knew that he could keep
control over WWE after he sold, something that wasn’t the
case with other bidders.
Last month, McMahon and WWE President Nick Khan were
sanctioned by the Delaware Chancery Court for acting
“recklessly” by enabling a setting to auto-delete Signal
messages while WWE was in the process of being sold to
Endeavor.
The sanctions made it harder for McMahon, Khan, and everyone
being sued by shareholders to defend themselves in the
trial, so reaching an out-of-court settlement was the best
case scenario for them.