In July, WWE and a group of investors were given approval by a judge to move forward with a $39 million settlement in regards to a class action lawsuit filed by the Firefighters’ Pension System of the Kansas City, Missouri Trust.
The lawsuit was brought forward because 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 group 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.
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.
The settlement was finalized on Monday, August 16, according to a new SEC filing.
In the filing, WWE continued to deny all claims made by the plaintiffs in the class action suit. However, the company believes resolving the suit in accordance with the terms of the settlement is the “proper business decision” and “prudent to end the protracted and uncertain derivative litigation process.”
