The ongoing shareholder lawsuit tied to Endeavor’s acquisition of WWE has taken another turn, and it’s not favorable for Vince McMahon and the other defendants involved.
A group of WWE shareholders is currently suing McMahon, former WWE President Nick Khan, Paul “Triple H” Levesque, Michelle Wilson, and George Barrios over the company’s 2023 sale and merger process with Endeavor.
The lawsuit alleges that McMahon pushed WWE toward a deal with Endeavor because it would personally benefit him under the new leadership structure created following the merger.
According to the claims, Endeavor CEO Ari Emanuel allegedly made promises to McMahon that influenced his decision-making during the sale process. Shareholders argue that McMahon favored Endeavor over other potential bidders that may have provided a more financially advantageous outcome for WWE and its shareholders.
The case is scheduled to head to trial on June 8.
Ahead of the trial, however, the judge overseeing the case ruled that McMahon and Khan “acted recklessly” by using the encrypted messaging app Signal while enabling settings that automatically deleted messages after a short amount of time.
That ruling resulted in sanctions being imposed against the defense due to what the court described as spoliation, or destruction, of evidence.
As part of the sanctions, the burden of proof has now shifted to the defendants, who must prove that several key allegations are not true.
Among the allegations they now must disprove are the following:
- * Emanuel’s promise to provide Vince with a continued role at any post-merger company after a transaction influenced Vince’s decision-making with respect to the merger.
* Emanuel’s offer of indemnification and other legal support related to pending federal investigations of Vince’s alleged misconduct influenced Vince’s decision-making with respect to the merger.
* Vince decided to pursue a transaction with Endeavor in 2022, before the Company initiated the strategic review process.
* Khan communicated with Emanuel between August and December 2022 to facilitate a transaction between WWE and Endeavor.
* Vince and Khan worked with Raine [banking company] to steer the process toward a deal with Endeavor and away from other potential bidders.
McMahon, Khan, Levesque, Stephanie McMahon, and former WWE executive Brad Blum were all identified as individuals who used Signal during the period in question.
The judge also clarified that while Wilson and Barrios were not Signal users, the sanctions ruling was still not considered unfair to them because it specifically relates to the conduct of McMahon and Khan and does not assume other parties were aware of or involved in the alleged evidence destruction.
Notably, neither WWE nor TKO are named as defendants in the lawsuit.
McMahon briefly held a high-ranking executive position within TKO following the merger, but resigned from the company in January 2024 after the sexual abuse allegations brought against him in Janel Grant’s lawsuit became public.
The upcoming trial is expected to feature testimony from several major figures tied to the WWE-Endeavor merger, including McMahon, Khan, Levesque, Emanuel, TKO President Mark Shapiro, and others.
(H/T: F4WOnline.com)