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A group of former WWE shareholders have alleged that the lead-up to WWE and Endeavor’s UFC merger into TKO Group this year was a “fake” campaign to keep Vince McMahon in power and diminish the interests of other shareholders. They have filed a class action lawsuit alleging breach of fiduciary duty against seven members of the WWE Board of Directors, including McMahon and Paul “Triple H” Levesque, claiming that actions were orchestrated to favor Endeavor and exclude other bidders.
Following McMahon’s removal as WWE’s president and CEO in 2022 amid an investigation, he returned to lead a newly formed board and initiated a strategic review process (i.e., the sale of the company) to retain control in the face of shareholder dissatisfaction and government investigations. The lawsuit claims that McMahon contacted Endeavor CEO Ari Emanuel to ensure his continued leadership following the merger. The WWE Board of Directors, controlled by McMahon, then allegedly orchestrated a sales process to favor Endeavor and eliminate other bidders.
According to the complaint, WWE signed non-disclosure agreements with potential bidders, and Endeavor submitted a proposal to merge with WWE in a cash and stock transaction. The lawsuit alleges that despite receiving higher offers, the board favored Endeavor’s proposal, ultimately leading to the merger and the formation of TKO Sports.
TKO Sports began trading on the New York Stock Exchange on September 12th.
