Stephanie McMahon, Ari Emanuel To Be Deposed In Shareholder Lawsuit Over TKO Merger

Stephanie McMahon, TKO CEO Ari Emanuel and more are scheduled to be deposed in the lawsuit filed by WWE shareholders over the company’s acquisition by Endeavor and merger into TKO. As previously reported, a lawsuit was filed in November of 2023 over the company’s merger, arguing that the WWE’s investigation into Vince McMahon was a “sham” and that the former WWE CEO manipulated the sale process to Endeavor for his benefit. Wrestlenomics reports that Emanuel is scheduled to be deposed in December for the lawsuit and that Stephanie McMahon, Frank Riddick, and Brad Blum are also set to be deposed.

The site reports that Emanuel is expected to be questioned about the terms of Endeavor and TKO’s merger as well as his communications with McMahon before the deal was closed. It’s been argued by the plaintiffs that McMahon wanted the company sold to Endeavor as he believed Emanuel would allow him to keep power where other buyers wouldn’t.

Meanwhile, Stephanie will be deposed on October 24th. She was a board member and resigned when Vince returned to power in early 2023. Wrestlenomics notes that lawyers for the plaintiffs may want to know what she knew about Vince’s return and her decision to resign, as well as internal board discussions about the merger.

Riddick will be deposed on October 28th, while Blum will be deposed on November 14th at WWE headquarters. Mark Zhu, the EVP of Strategy for TKO and Endeavor, will be deposed on December 5.

The plaintiffs in the shareholder case are asking the court to award financial damages and other remedies. They claim McMahon and other board members breached their fiduciary duties by manipulating the sale process.

The lawsuit alleges that the TKO merger was a part of McMahon’s “maneuvering to secure his power and control over the company in the face of mounting stockholder discontent and government investigations,” and that the events of the merger constituted “a sham sales process designed to favor Endeavor and exclude other bidders seeking to axe McMahon.” McMahon’s majority shares of WWE enabled the merger to take place without shareholder voting on the decision, and the complaint contends that “this unfair process led to an unfair price” when the entities ultimately merged.