The Wrestling Observer Newsletter are reporting that Judge Jed Rakoff has denied WWE's motion to dismiss a lawsuit made against them over a number of issues.
WWE were recently hit with multiple lawsuits which alleged that they had violated the Security Exchange Act by making misleading and even false statements about their relationship with Saudi Arabia. The key issue being that they failed to reveal what could have been seen as negative information and this led to people eventually buying stock at falsely inflated prices.
Now, the Wrestling Observer Newsletter have announced that the judge in this case has denied the company's motion to dismiss due to him deciding there was enough in the allegations that could be true under the rules which decide on motions to dismiss. On top of this, the judge also didn't throw out a testimony about the infamous Saudi Arabia plane hostage situation.
Judge Jed Rakoff of U.S. District Court in the Southern District of New York's statement on the matter read:
'Ultimately, none of defendants’ numerous arguments succeeds. Basically, this is because the complaint, while not a model of clarity, adequately alleges an overall claim of securities fraud that is not only plausible, but also complies with the relevant heightened pleading requirements applicable to this kind of action. While defendants have trotted out a virtual herd of objections to the (lawsuit), on close inspection, none is a winner.'
The original lawsuit was filed back in March by the Warren Police and Fire Retirement System against WWE, Chairman Vince McMahon and also two of the company's former officers Michelle Wilson and George Barrios.
Stay tuned as this case unfolds over the coming weeks and months.