Lawsuit filed against WWE over resources diverted to XFL

 
 

Bloomberg is reporting that WWE was served with a lawsuit by an Oklahoma firefighters pension fund which claims that there is “a credible basis to believe” that WWE Chairman and CEO Vince McMahon and other WWE senior officials breached their duties to investors by diverting resources to the XFL.

Vince McMahon’s XFL is promoted to be as a separate entity than WWE but in the past, WWE teams helped with several production and live broadcasts. Unlike last time around, the XFL does not fall under the WWE books and it’s a project that Vince McMahon funded by selling thousands of his WWE stocks.

The lawsuit also suggests that WWE’s board members failed to conduct appropriate oversight to ensure McMahon didn’t engage in transactions that conflict with WWE’s interests.

The lawsuit was filed on December 26 in Delaware Chancery Court.