In its second filing with the United States Securities and Exchange Commission yesterday, WWE revealed that it has agreed to settle a previously disclosed class action lawsuit brought forward by the City of Warren Police and Fire Retirement System for $39 million.
The Plaintiffs in the lawsuit alleged securities law violations by the WWE, its current Chief Executive Officer and its former Co-Presidents, related to certain disclosures concerning the business relationship in and with the Kingdom of Saudi Arabia. WWE was accused of inflating its stock with a promise of a TV deal in the Middle East when in reality negotiations had already failed and senior WWE executives sold nearly $300 millions worth of stock before news came out and the stock tanked. To this day, WWE remains without a television deal in the region.
The out-of-court settlement was reached between attorneys for both parties and WWE’s insurance. The settlement will include a full release of all defendants in connection with the allegations made in the lawsuit, and will not contain any admission of liability or admission as to the validity or truth of any or all allegations or claims by any of the defendants.
“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,” the filing said.