A major lawsuit by WWE shareholders is heading toward trial, with plaintiffs claiming shareholders could be entitled to hundreds of millions of dollars in damages.
The lawsuit was filed by a group of WWE shareholders against Vince McMahon, company president Nick Khan, Chief Content Officer Triple H, and former co-presidents George Barrios and Michelle Wilson. The plaintiffs allege that the wrestling promotion’s internal investigation into misconduct allegations against McMahon was inadequate and claim the company’s sale process was manipulated ahead of the merger with Endeavor.
According to a report by POST Wrestling’s Brandon Thurston, attorneys representing the shareholders are seeking damages ranging from $466 million to $957 million, excluding interest accrued since the merger was completed in 2023.
The figures are based on an expert report prepared by financial economist James L. Canessa on behalf of the plaintiffs.
WWE Shareholders Allege That The Company Was Undervalued During Negotiations To Sell To Endeavor
At the centre of the case is the formation of TKO Group Holdings, which brought WWE and UFC together under the Endeavor umbrella. Under the terms of the deal, Endeavor received a 51 percent controlling stake in TKO, while WWE shareholders received 49 percent.
The plaintiffs argue that WWE was undervalued during negotiations and contend that shareholders should have received between 53 and 57 percent ownership of the merged company. As part of their argument, they cite internal Endeavor documents that reportedly suggested WWE’s value could increase significantly following future media rights negotiations.
The defence disputes those claims. According to expert testimony presented on behalf of the defendants, the plaintiffs’ valuation fails to properly account for the financial benefits of the merger, including cost savings and additional revenue opportunities from combining WWE and UFC.
That analysis argues the shareholders may have received a more favourable deal than alleged, suggesting the company’s ownership stake in TKO could have been worth as little as 48.1 percent.
The case is currently scheduled to go to trial next week.
