WWE and a group of investors have been given approval by a judge to move forward with a $39 million settlement regarding a class action lawsuit filed by the Firefighters’ Pension System of the Kansas City, Missouri Trust.
The group alleged that WWE executives deceived investors regarding their business in Saudi Arabia by artificially inflated their stock and that senior execs sold more than $280 million of their shares at “fraud inflated prices.”
The lawsuit also alleged the company did not disclose failed negotiations with the Saudi government over their TV deal as well as WWE not being able to expand in that region, despite claiming otherwise to their investors.
Last November, an SEC filing by WWE revealed that the company closed on a $39 million settlement for a class action lawsuit
Bloomberg Law reports the final approval was given by Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York last week. The deal represents around 18.2% of estimated classwide damages.
The judge previously rejected WWE’s bid to dismiss the suit in late 2020 and then the settlement was approved in March of this year. The settlement cast includes everyone who acquired WWE common stock from February 7, 2019 through February 5, 2020, and lost money as a result.
Labaton Sucharow LLP of New York City will get $7.02 million in attorney’s fees, which is 18% of the settlement fund, in addition to more than $468,000 as reimbursement for litigation expenses.
The Firefighters’ Pension System of the Kansas City, Missouri Trust will receive more than $6,200 as a reimbursement for their expenses. It should be noted that WWE did not admit any fault to the allegations.