WWE is under new investigation by another law firm
A new report has revealed that WWE is the subject of an investigation from another law firm called The Schall Law Firm.
The promotion has been at the center of a storm of controversy recently and is already involved in a scandal regarding alleged hush money payments. The Schall law firm is characterized as a "national shareholder rights litigation firm", and it was announced today that they are investigating the company.
The investigation is proceeding on behalf of WWE investors due to the company's potential "violation of securities laws." The investigation will mainly focus on "whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors."
A second law firm looking to take up class action against WWE. businesswire.com/news/home/2022…
The press release for the investigation also specifically mentioned the recent WSJ report on the investigation of Vince McMahon. The investigation is currently ongoing and began with allegations of an alleged $3 million payment from Vince to a former employee over an alleged sexual relationship.
The law firm also took note of former nondisclosure agreements involving John Laurinaitis and McMahon himself, along with the company's special board over allegations of misconduct. The firm has also asked shareholders who suffered losses over these recent activities to come forth and pursue a class-action lawsuit against the company.
It seems trouble is only piling up for the company and could drag many into losses if not resolved soon.
The fallout from WWE's investigation of Vince McMahon
Since reports came out regarding the WWE Board of Directors' investigation into Vince McMahon, a few significant changes have transpired. Following the scandal, we have seen Vince step back from his duties as CEO and Chairman of the company. However, he will continue his duties as the Head of Creative.
Taking his place is Stephanie McMahon as the interim CEO and Chairwoman, who stated that she will stay appointed until the investigation concludes.
Until the conclusion of the investigation into recent allegations, I am honored to assume the role of interim Chairwoman & CEO. I love @WWE and all it continues to do to entertain billions around the world.
corporate.wwe.com/investors/news…
It was quite surprising to see Stephanie coming back to take the mantle of CEO after taking an absence from the company to focus on her family. Perhaps Vince's replacement could be the dawn of a new chapter in the promotion's history altogether and lead to successful and refreshing ventures.
We'll have to patiently wait and see how the investigation goes to determine how the future of the company will look.