To paraphrase Smash Mouth, the investigations keep coming, and they don’t stop coming.
Following news of five different law firms investigating the company, two more have now announced they’ll be looking into WWE’s handling of fiduciary responsibilities to investors in the build up to, and fallout from, a bombshell report from the Wall Street Journal detailing an investigation by WWE’s own board of directors into hush money payments made by chairman & CEO Vince McMahon. The news has had a dramatic effect on WWE’s stock price, leading to the investigations on behalf of long-term WWE shareholders, who feel the company’s actions were not in the best interest of investors.
Like the other five companies, Pomerantz Law Firm and Moore Kuehn, PLLC will both look into whether WWE breached their fiduciary duties to shareholders, committed securities fraud, or engaged in other unlawful business practices. If proper evidence is found in the investigation, a class action law suit could be formed on behalf of investors, but no investigation has been officially designated a “class” as of publication.
An investigation into January 2022 Non-Disclosure Agreement (NDA) between McMahon and a former WWE paralegal led to the discovery of numerous NDAs between McMahon and former female employees alleging misconduct. WWE Head of Talent Relations John Laurinaitis was also named in the WWE board’s investigation. McMahon has since stepped down from his corporate duties while maintaining control over the company’s creative direction. Laurinaitis has been placed on administrative leave.
Since news of the investigations broke, McMahon has made appearances on both “WWE SmackDown” and “WWE Raw.” The 76-year old executive did not address any allegations or the investigations on-screen or backstage, where he was said to be in a jovial mood despite the situation.
Have a news tip or correction? Send it to [email protected]