An Oklahoma firefighters pension fund, who hold a stake in WWE stock, have filed a lawsuit against Vince McMahon over the new upstart XFL.
The lawsuit, filed on Dec. 26 in Delaware Chancery Court, claims there is “a credible basis to believe” that McMahon and other WWE senior officers breached their duties to investors by diverting valuable resources to the XFL. Further, it’s alleged WWE’s board members may have failed to conduct appropriate oversight to ensure McMahon didn’t engage in transactions that conflict with WWE’s interests.
Vince McMahon created a separate privately-held company for the XFL to avoid issues such as this, selling his own shares of WWE stock to get the startup capital. However, that hasn’t stopped these shareholders from believing the conflict of interest could have financial ramifications against the publicly-traded WWE.
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