The WWE and Vince McMahon may have struck a deal with Endeavor to create a new combat sports company but the same old legal issues are still following them.
Ademi LLP has announced that they are investigating WWE for possible breaches of fiduciary duty and other violations of law in its transaction with Endeavor.
“The transaction agreement unreasonably limits competing bids for WWE by imposing a significant penalty if WWE accepts a superior bid. WWE insiders will receive substantial benefits as part of change of control arrangements,” said Ademi in a statement.
“We are investigating the conduct of WWE’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for WWE,” Ademi continues.
Ademi maintains that the transaction values WWE’s shares at only approximately $106 per share (before any post-closing dividend) with Endeavor holding a 51% controlling interest in the new company and existing WWE shareholders holding a 49% interest in the new company.
Ademi is encouraging those who own WWE common stock and wish to obtain additional information, please contact Guri Ademi either at gademi@ademilaw.com or toll-free: 866-264-3995, or https://www.ademilaw.com/case/world-wrestling-entertainment-inc.
