According to a report from Wrestlenomics, it appears former WWE CEO and Chairman Vince McMahon is refraining or delaying full compliance with discovery in the ongoing shareholder lawsuit filed in 2024 pertaining to WWE’s merger with TKO.
Wrestlenomics notes that filings submitted on April 29 and 30, the plaintiffs requested the Delaware Court of Chancery to force him to respond to said discovery requests, including producing certain documents.
The shareholder group, spearheaded by the Laborers’ District Council and Contractors’ Pension Fund of Ohio, alleges McMahon predetermined the merger process with UFC’s parent company Endeavor. Because the case is now at discovery stage, both sides are legally obligated to exchange evidence. The plaintiffs have indicated they want all non-privileged materials related to McMahon between January 1, 2022 and March 12, 2024. However, the details of is being sought is said to be sealed from public view.
Wrestlenomics also notes that the court has given McMahon a deadline of until May 14 to oppose the motion. However, if McMahon fails to oppose the motion, the court then could automatically grant the request of the plaintiffs.
This lawsuit, which was originally filed back in November 2023, further alleges the WWE Board of Directors and McMahon failed to maintain all of the proper fiduciary duties by not conducting a fair sale process of WWE. The complaint also states Endeavor was not the highest bidder, but was the sole bidder that allowed McMahon to remain in power after he pushed his way back into WWE in early 2023, after stepping down in 2022 due to the hush money scandal that now has since been settled with the SEC.
The plaintiffs further claim McMahon had long made the decision to strike up a merger deal with his longtime friend and Endeavor founder Ari Emanuel and ignored all the other offers made, even if better, because it would have seen McMahon being bought out completely. The all stock merger deal between WWE and Endeavor was done in 2023, thus forming TKO. As a result of the merger, McMahon was able to keep his top spot as TKO’s Executive Chairman and also maintain as the company’s major stockholder. However, with the merger his super-voting power tied to his Class B founder shares that had initially allowed him to still have control of WWE, despite holding a minority of its equity, was eliminated.
Wrestlenomics states that if the shareholder lawsuit is successful, This then could lead to those who held WWE shares during the relevant time period receiving compensation.