UPDATED: WWE has been hit with more class action lawsuits, one from the
Gross Law Firm that claims WWE made “materially false and/or misleading statements and/or failing to disclose” that they perpetrated a fraudulent scheme.
Another from
Kessler Topaz Meltzer & Check specifically mentioned the “tensions” between WWE and the Saudi government, centered around the Saudi government owing WWE millions of dollars.
“However, by at least early 2019, tensions in the relationship between WWE and the Saudi government had reached a breaking point. The Saudi government had refused to make millions of dollars in payments owed to WWE. Further, OSN was contemplating the early termination of its obligations under its broadcasting agreement (ultimately terminated in March 2019) and had rebuffed WWE’s efforts to renew the agreement. These developments threatened WWE’s ability to reach a renewed media agreement in 2019, which WWE told investors was critical to its expansion plans in the MENA region and its growth prospects. Moreover, WWE was facing withering consumer engagement in its traditional markets. Rather than disclose these adverse developments, the defendants represented that WWE had continued to bolster its relationship with Saudi Arabia and was making significant progress on the renewal of the critical media agreement and its business initiatives in the country.”
This follows the earlier class action suit (described below) that referenced WWE wrestlers being held “hostage” by the Saudi government as part of a dispute with Vince McMahon.
