Number Of Investigations Into WWE Grows

In the past few weeks, it's been revealed that former WWE CEO and Chairman Vince McMahon was under investigation for allegedly spending over $14 million in hush money to cover up multiple counts of sexual misconduct. Since then, McMahon temporarily stepped down from his position in WWE before fully retiring from the company last week. This prompted McMahon's daughter, Stephanie, and WWE President Nick Khan to step up as co-CEOs of the WWE, with McMahon's son-in-law and WWE Hall of Famer Triple H taking over creative control. Now it appears that the WWE isn't entirely out of the clear yet, as the company continues to be investigated after some Stock Market trouble.

"BusinessWire" reported earlier this week that national shareholders law firm, Glancy Prongay & Murray LLP, is investigating the WWE on behalf of their shareholders, concerning WWE's possible violations of the federal securities laws.

Not long after the Wall Street Journal's original report that claimed McMahon had paid a former employee $3 million to keep quiet about a potential affair between them, WWE's stock fell 3.4% ($2.31) to $64.87 a share just one day later. After the Wall Street Journal then reported that McMahon not only paid $3 million but closer to the sum of $12 million, WWE's stock went down once again. This time, only 2% ($1.31) came to $63.76 a share. After WWE's stock dropped over 5%, many investors were hurt by this, thus prompting the investigation.

As noted, "BusinessWire" also reported that the WWE is set to restate all its financial statements back to 2019. In their investigation, the company reportedly found $14.6 million in recorded expenses dating back sixteen years ago, in 2006. All investigations regarding Vince McMahon's alleged hush money payments are still ongoing at this time.

Stay tuned for more updates.

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