Vince McMahon's ongoing scandal has actually already cost WWE approximately half a billion dollars, according to the Wrestling Observer's Dave Meltzer. The Wall Street Journal released a report back on June 15 mentioning the WWE Board of Directors was examining McMahon over apparently paying $3 million to a former staff member as part of a hush pact to keep their affair quiet. Both McMahon and WWE Head of Talent Relations John Laurinaitis, who was likewise linked in the report, have since briefly stepped far from their front office positions with Stephanie McMahon stepping in as interim CEO and Chairwoman.
There have not been any extra information about the report released as of yet and McMahon has actually chosen to appear on both SmackDown and Raw over the past week while continuing to run as WWE's head booker. And while those appearances managed to pop scores, the company's stock has actually taken an obvious hit by dropping from $66 per share last Thursday to $59 since this writing). Five law firms are now investigating the company for potential lawsuits on the behalf of financiers as well.
" It's important of WWE to attempt and get the stock price up, and make sure it returns to its former level," Meltzer said. "Since the story broke WWE's lost about half a billion dollars in its evaluation. Because of that, there have actually been five firms, and there's probably gonna be more that come out because this is a copycat kind of a situation, that are trying to get specifically institutional investors in WWE stock as clients for class-action claim that would blame what occurred with Vince on the stock price drop.".
" WWE stock reduced a lot since this thing went down, and because of that there's some similarities between this and the Saudi Arabia thing, which if you remember, there were about 20 different companies that filed suit there, and it cost WWE 39 million dollars to settle that one," he continued. "This one, WWE would almost have to settle, because what would happen if the suit gets filed. Vince would have to be deposed because it's gon na be all about what Vince did. that would be the core of the fit. Which means that if they went to discovery, Vince would need to be under oath and he 'd have to address these questions associating with precisely what he's been attempting to currently pay people off to keep quiet.
What they're searching for would be the settlement. So if the stock price returned to its old worth, there's absolutely nothing that the investors can take legal action against over, because it didn't cause the stock price to drop. However because the stock price has actually dropped, if it doesn't return up, whatever the distinction is, they can claim that is due to the publicity of what occurred to Vince has actually hurt the stock so that's the key thing.".
