According to reports from Forbes, WWE is currently facing a class action lawsuit by the City Of Warren Police and Fire Retirement System.
[lawrence-related id=982212]The lawsuit is made to the company from allegations that they defrauded investors on their dealings with the Saudi government.
Photo: WWE
The law firm, Robbins Geller Rudman And Dowd LLP, released the following statements in the press release concerning the allegations made against the WWE:
WWE “failed to disclose that WWE was experiencing rising tension with the Saudi government and a breakdown in negotiations over a renewed broadcasting distribution deal.”
“…the Saudi government and its affiliates had failed to make millions of dollars in payments owed to WWE pursuant to existing contractual commitments between the parties.”
“…OSN had terminated the broadcast of WWE programming in the first quarter of 2019, despite a contractual obligation to continue such broadcasts, and that this cancellation was symptomatic of a deterioration in the business relationship between the parties.”
“…OSN had rebuffed efforts to renew a distribution rights agreement on terms acceptable to WWE.”
“…WWE did not have the ability to expand its operations in the Middle East or within Saudi Arabia as had been represented to investors.”
Photo: Forbes
The report also reported WWE’s response to the lawsuit by the company issuing a statement on March 7th by saying:
“Although WWE has not been served, the company’s outside counsel Jerry McDevitt of K&L Gates has reviewed the complaint, which is based on false and incorrect gossip from unnamed sources, and we will move to dismiss the case as it is meritless.”
It is unclear at this moment in time if the plaintiffs in the case would enough evidence to take the lawsuit further but as of right now, WWE is standing by their denial of the allegations and we will update you with more on this story.
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