New lawsuit filed challenging WWE’s TKO merger

A lawsuit was recently filed in Delaware against Vince McMahon and other leadership at WWE, alleging that the company’s recent merger with Endeavor resulted in damages to WWE shareholders (via Bloomberg Law). According to the complaint, the merger resulted in lower share prices than might otherwise have been realized and was intended to allow McMahon to retain influence over WWE. Both Paul Levesque and Nick Khan are named in the lawsuit as well, although Endeavor and TKO are absent from being listed as defendants.

The lawsuit alleges that the TKO merger was a part of McMahon’s “maneuvering to secure his power and control over the company in the face of mounting stockholder discontent and government investigations,” and that the events of the merger constituted “a sham sales process designed to favor Endeavor and exclude other bidders seeking to axe McMahon.” McMahon’s majority shares of WWE enabled the merger to take place without shareholder voting on the decision, and the complaint contends that “this unfair process led to an unfair price” when the entities ultimately merged.