LLC Notifies WWE Shareholders Of Investigation

While WWE is flying high at the moment following a record-breaking Royal Rumble weekend, there remains a ton of uncertainty behind the scenes following Vince McMahon's sudden return to power. McMahon strong-arming his way back onto the WWE Board of Directors, and the subsequent fallout, has already brought forth a couple of lawsuits, and it appears it will now bring forth an investigation, as well.

In a press release sent to Business Wire on Wednesday, the law firm Bronstein, Gewirtz, & Grossman LLC announced it was investigating "potential claims on behalf of purchasers of World Wrestling Entertainment, Inc." A later statement revealed that the investigation was regarding whether WWE had "violated federal securities laws." The release encouraged those who had purchased WWE stock, or "securities," to assist in the investigation, even providing a website to do so.

The release included facts first reported by the Wall Street Journal in June 2022, when McMahon, then CEO and Chairman of WWE, came under investigation by the WWE Board of Directors for various payments he allegedly made to former employees to cover up potential allegations of sexual misconduct. McMahon ultimately retired a month after the Wall Street Journal article, only to return in January 2023, securing power once more.

It's unclear how far along Bronstein, Gewirtz, & Grossman are in regards to this investigation into WWE, or if they will be helping to bring another lawsuit against the company at a later date. The release noted that the LLC represents investors in security fraud class action lawsuits, as well as shareholder derivative suits.