There have been several office departures this week and a $ 39 million lawsuit settlement announced in a disclosure Friday.
Mark Kowal is replaced by Karen Mullane as the new Controller and Senior Accountant. Senior Vice President / General Counsel and Secretary Brian Nurse and Executive Vice President, Global Sales and Partnerships Director and International Director John Brody have also been released by WWE.
The $ 39 million settlement relates to a class action lawsuit filed by the police and the fire department in the city of Warren, Mich., Alleging that WWE executives deceived investors about their operations in Saudi Arabia.
The lawsuit alleged that WWE executives artificially inflated their stock and the executives sold more than $ 280 million worth of their stock at “fraud-inflated prices.”
As part of the lawsuit, it was alleged that WWE did not disclose the failure of negotiations with the Saudi government over their televised deal and that WWE was unable to develop in this region, although that it has claimed the contrary to its investors.
WWE issued this statement, “The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process.”
Here is the disclosure on the settlement:
On November 18, 2020, World Wrestling Entertainment, Inc. (the “Company”) entered into a Term Sheet (the “Condition Sheet”) to settle the previously disclosed action entitled City of Warren Police and Fire Retirement System, individually and on behalf of all others in a similar situation, v. World Wrestling Entertainment, Inc., Vincent K. McMahon, George A. Barrios and Michelle D. Wilson, # 1: 20-cv-02031-JSR, currently in proceeding in the United States District Court for the Southern District of New York (the “court”). The plaintiffs in the lawsuit alleged violations of securities law by the Company, its current CEO and former Co-Chairmen, regarding certain disclosures regarding the Company’s business relationships in and with the Kingdom of Saudi Arabia. The condition sheet was established through voluntary mediation that involved the claimants and their attorneys, the company and its attorneys, and the company’s insurers. In addition to the condition sheet, there will be other standard and customary class action settlement terms in the settlement statement. The settlement is subject to a group notice and preliminary and final court approval.
The settlement will include a full discharge of all defendants in relation to the allegations made in the lawsuit, and will contain no admission of liability or admission as to the validity or veracity of any or all of the allegations or claims. of one of the defendants.
The terms sheet provides for a settlement payment, subject to court approval, of $ 39 million (including all plaintiffs’ attorney fees and costs and settlement costs), which the company expects that all are paid by the insurers of the company.
The Company believes that resolving the matter is the right business decision and that it is prudent to end the protracted and uncertain class action process.
Caution regarding forward-looking statements
This report on Form 8-K contains forward-looking statements. Forward-looking statements may be identified by words such as “expects”, “intends”, “anticipates”, “plans”, “believes”, “seeks”, “believes”, “will” or words having a similar meaning. Forward-looking statements made by the company speak only as of the date they were made, are subject to change without any obligation on the part of the company to update or revise them, and you should not hesitate take undue pride in these statements. For more information on the risks and uncertainties associated with the activities of the Company, please refer to the “Management’s Discussion and Analysis on Financial Position and Results of Operations” and “Risk Factors” sections of Form 10-Q of the company for the quarter ended September 30. 2020, and other documents filed by the company with the SEC, including, but not limited to, its annual report on Form 10-K.