The legal battle surrounding WWE’s merger with Endeavor is taking another dramatic turn, as shareholder plaintiffs are now asking the Delaware Chancery Court to sanction several top WWE executives over the alleged destruction of key evidence.
According to a new motion filed in the case via POST Wrestling, the plaintiffs claim that Vince McMahon, WWE President Nick Khan, and WWE Chief Content Officer Paul Levesque failed to preserve important communications related to the merger process. The filing also references former WWE executives Stephanie McMahon and Brad Blum, who are not defendants in the case but are accused of failing to retain relevant records.
The plaintiffs are asking the court to issue what is known as an “adverse inference,” which would allow the judge at trial to assume that missing communications would have been damaging to the defendants responsible for their disappearance.
At the center of the dispute are communications sent through the encrypted messaging app Signal, which allows users to set messages to automatically delete. The motion alleges that Khan frequently used the platform for discussions related to the WWE merger and even encouraged others to shift conversations away from traditional text messaging.
Plaintiffs say one exchange between Vince McMahon and Khan reflects this effort. During a discussion about the WrestleMania main event between Cody Rhodes and Roman Reigns, Khan allegedly responded with a cryptic message directing McMahon to move the conversation elsewhere. “Langis.” When McMahon asked what the message meant, Khan reportedly clarified the instruction, “Read it backwards!”
Plaintiffs argue that the exchange was a clear signal for McMahon to continue the conversation on Signal instead of standard text messaging. The motion also introduces a previously unreported allegation involving a December 13, 2022 meeting between Vince McMahon, Stephanie McMahon, Nick Khan, and Endeavor executives Ari Emanuel and Mark Shapiro. According to the filing, the meeting occurred weeks before McMahon used his controlling interest to return to WWE and begin pushing for a sale or merger.
At the time, Vince McMahon had stepped away from the company after announcing his retirement in July 2022 amid investigations into alleged sexual misconduct and undisclosed hush-money payments to former employees.
Plaintiffs claim the December meeting supports their broader argument that the eventual merger forming TKO Group Holdings was effectively predetermined. The lawsuit alleges that McMahon and other executives steered the process toward Endeavor while limiting the chances for competing offers that could have benefited WWE shareholders.
The motion also states that records produced during discovery show McMahon had Signal communications with numerous individuals, including Khan, Levesque, Ari Emanuel, Stephanie McMahon, Saudi Arabia’s General Entertainment Authority chairman Turki Al-Sheikh, Brock Lesnar, Bruce Prichard, Kevin Dunn, and others. However, the publicly released materials redact the message auto-deletion settings for several key individuals accused of failing to preserve communications.
Attorneys for Nick Khan previously stated that he does not recall the specific content of the deleted messages referenced in discovery.
The lawsuit is currently scheduled to go to trial in June. If the shareholder plaintiffs ultimately prevail, they could recover significant financial damages. In merger-related lawsuits involving companies valued in the billions, even small differences in valuation can translate into tens or hundreds of millions of dollars.
For now, the defendants have denied wrongdoing, and representatives for WWE, TKO, Vince McMahon, and Stephanie McMahon did not respond to requests for comment regarding the newly alleged December 2022 meeting.
As the case moves closer to trial, the outcome could have major implications for how the WWE-Endeavor merger is viewed legally and financially.
Do you think the alleged missing messages could significantly impact the outcome of this lawsuit, or will the defendants ultimately be able to explain the situation in court? Share your thoughts and join the discussion in the comments.