Stockholder Files Lawsuit Against WWE Over Conflict Of Interest With XFL
On 12/26, a lawsuit was filed in Delaware Chancery Court by the Oklahoma firefighters pension fund, which owns shares of World Wrestling Entertainment Inc.
According to Bloomberg Law, the stockholder claims there is “a credible basis to believe” that Vince McMahon and other senior WWE executives have breached their duties to investors by diverting resources for the XFL.
The suit also claims that company board members have failed to ensure Vince McMahon didn’t engage in transactions that conflict with WWE interests.
The stockholder is seeking access to internal records that detail WWE’s involvement with XFL.
When Vince McMahon initially announced the XFL he made it clear that no crossover would be made between WWE and the football league.
“There will be no crossover whatsoever in terms of talent or anything like that from WWE to the new XFL,” McMahon said during a press conference in January 2018.
On March 27, 2019, McMahon sold 3,204,472 shares of WWE stock to primarily fund his other company, Alpha Entertainment based on SEC filings.