Before we get into this article I would like to explain what the term fiduciary duty means in terms of the upcoming article. The term fiduciary duty simply means trust and is something that a company has a legal obligation to maintain to their shareholders. For example, a case could be made that high ranking officials within a company have the fiduciary duty to disclose certain information to shareholders even if it could affect the company negatively. This week has been rough for WWE, the day after the announcement that Vince had paid off a former employee it was announced that another investigation had been launched by nationally known law firm Scott+Scott Attorneys at Law specializing in cases involving consumer rights and securities litigation.
Once I saw this I had assumed I knew what it was about and according to the reports from both business wire and fightful.com I might've been right. Follow the provided links for the full stories!
"NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is investigating whether certain directors and officers of World Wrestling Entertainment, Inc. (“WWE”) (NYSE: WWE) breached their fiduciary duties to WWE and its shareholders. If you are a WWE shareholder, you are encouraged to contact attorney Joe Pettigrew for additional information at (844) 818-6982, or firstname.lastname@example.org."
"Scott+Scott is investigating whether members of WWE’s board of directors or senior management failed to manage WWE in an acceptable manner, in breach of their fiduciary duties to WWE, and whether WWE and its shareholders have suffered damages as a result."
(from Business Wire)
"On Wednesday, the Wall Street Journal published a report saying the WWE board of directors is investigating McMahon on a secret $3 million hush pact regarding an alleged affair. (From Fightful.com)
Once I heard about the investigation I had a feeling that I knew the reason Scott+Scott took it upon themselves to launch an investigation, because once you read that the Board of Directors had privately launched an investigation two months ago you knew. The fact that this privately known information for two months time without the public or more importantly without shareholders likely being looped in is borderline a violation of fiduciary duties in my opinion. "Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio." (From Business Wire)
Again I don't classify Wrestling Express as a news reporting website which is why I normally don't jump on stories when they are first reported. I classify this site as an opinion based website mostly due to my unwillingness to comment on big stories until everything or more information made aware to us on some stories like this one for example.
Sharing my thoughts, opinion, and historical facts on everything WWE both past and present