Shane McMahon Named as Defendant in Lawsuit Against Fintech Firm Ideanomics

Shane McMahon is on a list of defendants in a shareholder lawsuit against fintech company Ideanomics. Heel By Nature reports that McMahon, who is a Vice Chairman of the Board, is among the list of defendants in the lawsuit which accuses the Ideanomics executive team of “breaches of their fiduciary duties as controlling shareholder, directors and/or officers of Ideanomics, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and a violation of the Section 14(a) of the Securities Exchange Act of 1934.”

Ideanomics is a fintech (financial and technological innovations) company that has its hands in “facilitating the adoption of commercial electric vehicles and developing next generation financial services and Fintech products.” McMahon has served as company director since 2010, and also served as Vice Chairman and CEO during his time there. McMahon was involved with the company back when it was called “You On Demand” and was a Chinese-based Video on Demand company.

The complaint alleges that Ideanomics has repeatedly made false claims between February of 2017 and November of 2018 which caused the stock to rise and then dramatically fall when the claims were found to be inaccurate. McMahon owns around $2.1 million worth of company stock as of November of 2019 and ties McMahon to the alleged offenses as follows:

“Additional reasons that demand on Defendant McMahon is futile follow. Defendant McMahon has served as a Company director since July 2010. He has also served as Vice Chairman since January 2016 and served as the Company’s CEO in 2012. Defendant McMahon has received and continues to receive compensation for his role as a director, as described above. As a longtime Company director, he conducted little, if any, oversight of the Company’s engagement in the schemes to make false and misleading statements during the First and Second Relevant Periods, consciously disregarded his duties to monitor such controls over reporting and engagement in the schemes, and consciously disregarded his duties to protect corporate assets. Furthermore, Defendant McMahon signed, and thus personally made the false and misleading statements in 2017 10-K. For these reasons, too, Defendant McMahon breached his fiduciary duties, faces a substantial likelihood of liability, is not independent or disinterested, and thus demand upon him is futile and, therefore, excused.”

The full lawsuit is below:

Shane McMahon Lawsuit Idean… by Heel By Nature on Scribd