Stockholder Sues WWE Over XFL Ties

Is Vince McMahon taking WWE resources for the XFL re-launch?

On January 25th, 2018 it was announced that Vince McMahon had started a new company called ‘Alpha Entertainment’ and under that new company McMahon would re-launch the XFL. McMahon initially stated there the XFL will be solely run under Alpha Entertainment and have no direct ties to the WWE. Some believed that and some did not and now one who does not is suing WWE to prove there are no ties between them and the XFL.

According to a report from Bloomberg Law, they are reporting that a lawsuit has been filed against WWE by one World Wrestling Entertainment Inc. stockholder in order to see the internal records of the company. The stockholder wants to see the internal records of WWE to see what ties if any they have with the XFL.

The lawsuit was filed on December 26 and the stockholder wants to make sure no WWE company resources are being used or diverted to the XFL like McMahon said they would not be.

The stockholder says in the lawsuit, that there is “a credible basis to believe” that the higher-ups in WWE breached their duties to their investors. The belief is that “valuable resources” have not been used for WWE have been diverted to the XFL and their production.

With the lawsuit being filed over the last week and it being the holiday season right now it does not look like there will be any formal ruling on this case for some time. If and when we hear any updates to the lawsuit we will keep you guys updated.