The investigation into Vince McMahon may bring lawsuits to WWE’s door.
WWE’s stock price had remained strong amid the recent bearish trend the market has been experiencing. They just had to find a reason to join everyone else.
Following the news of the company’s investigation into Vince McMahon’s alleged misdeeds and the WWE chairman stepping down temporarily, the price of shares has gone down, causing ears at various law firms to perk up.
According to reports, five such entities are searching for investors who lost money as a result of the development as they look to undertake class-action lawsuits.
No suits have been filed as yet but more firms are said to be looking into the matter, which means there’s likely something to answer to on that front. Brandon Thurston of Wrestlenomics is reporting that two more firms have joined the search as they sense there is an opportunity to make some money at WWE’s expense.
Per Thurston, the Pomerantz Law Firm and Moore Kuehn, PLLC are now looking into the possibility of a suit against WWE. It’s thought that the company’s failure to disclose the information before it became public has caused people to los a lot of money.
McMahon is being investigated over claims he paid $3 million in hush money to a former employee he had an affair with, whom he also passed to head of talent relations John Laurinaitis “like a toy.” His daughter Stephanie will be in charge for the foreseeable future, having returned to grab the reins after leaving on a sabbatical in May.
The firms in question are still trying to determine just how much money people lost in order to come to a decision on whether a class-action suit can be sought.
Should their findings prompt them to take legal action, it could spell big trouble for WWE.
Meanwhile, McMahon remains in charge of creative while Stephanie runs the company.