In the wake of WWE’s investigation of Vince McMahon over hush money he paid to keep an affair with an employee quiet, several law firms have been trying to capitalize. WWE’s share price took a dip after the news broke. Five groups have already begun searching for investors who lost money over the news to include in potential class-action lawsuits.
No lawsuits have been filed, but the number of firms looking into the matter keeps adding up. Now, two additional law firms have joined the search, according to Brandon Thurston of Wrestlenomics. It appears as though such groups see the opportunity for lucrative legal action.
Pomerantz Law Firm and Moore Kuehn, PLLC are the latest to start an investigation into a potential suit against WWE. Value of WWE stock significantly dropped the day after the news about Vince McMahon broke. The belief is that a failure to have disclosed information that was known before it became public cost a lot of people big bucks.
Vince McMahon has stepped down as CEO of WWE while the investigation is ongoing. His daughter, Stephanie McMahon, has since been moved into his position on an interim basis. McMahon is still in charge of creative for the company.
As of now, no formal lawsuits have been filed. The law firms are attempting to learn how many people lost money due to the news. They will then determine if there are legal grounds to pursue a class-action suit.
These are nervous times at WWE headquarters. As the Vince McMahon scandal continues to leave a ripple effect on the company, WWE’s board must now face the possibility of huge financial liability if these lawsuits do happen. That remains to be seen, but so far, plenty of law offices are willing to look into it.
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