WWE has found closer to a lawsuit regarding their business relationship with the Kingdom Of Saudi Arabia.
WWE announced the news in an SEC filing, which states a settlement of $39 million will be paid to City Of Warren Police and Fire Retirement System, stockholders who made a complaint earlier this year.
Basically, the lawsuit alleged that WWE executives artificially inflated stock prices, sold shares, and failed to disclose failed negotiations regarding a new broadcast deal in Saudi Arabia.
An excerpt of WWE’s statement reads like the following:
“The Term Sheet was reached in connection with a voluntary mediation which involved the Plaintiffs and their counsel, the Company and its counsel, and the Company’s insurance carriers. Aside from the Term Sheet, there will be other standard and customary terms of class action settlements in the stipulation of settlement. The settlement is subject to notice to the class and preliminary and final approval by the Court.
The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process.”
The defendants listed in the lawsuit were WWE, Vince McMahon, and former WWE Co-Presidents George Barrios and Michelle Wilson. WWE expects the settlement to be paid by their insurance carriers.