A holdup that had been delaying the finalization of the $147.5 million settlement in the WWE shareholder lawsuit appears to have been resolved.
The settlement had been held up by what was described as a “narrow disagreement” between attorneys representing Vince McMahon and those representing Nick Khan, Paul “Triple H” Levesque, George Barrios and Michelle Wilson.
While the defendants had already agreed to settle the lawsuit, there were still issues to work out regarding legal claims between the parties over responsibility for the payments and what would be covered by insurance.
According to documents filed with the Delaware Court of Chancery, the WWE-affiliated defendants and TKO now believe those outstanding issues have been addressed.
Attorney Ryan D. Stottmann, who represents Khan, Levesque, Barrios and Wilson, wrote in an August 24 letter:
“I write on behalf of the parties in response to the Court’s minute order (Dkt. 506) instructing that a joint update on the status of the settlement papers be filed by today. Defendants Khan, Levesque, Wilson, and Barrios (the “D&O Defendants”) and Non-Party TKO believe they have addressed the outstanding issues regarding the intra-defendant releases at issue, and are awaiting final signoff from certain non-party insurance carriers. The D&O Defendants and TKO understand that approval should be obtained promptly, and anticipate being able to provide signature authority for the stipulation of settlement immediately upon receiving that approval.”
The plaintiffs maintain that approval from the insurance carriers was not a condition of the settlement and should not delay its finalization.
Under the terms of the $147.5 million settlement, WWE’s portion is $105 million. TKO expects insurance to cover $75 million of that amount.
The remaining $42.5 million is to be paid by McMahon and/or insurers on his behalf.
The WWE-affiliated defendants and TKO say insurance approval is now the final step before they authorize execution of the settlement papers, with that sign-off expected to come shortly.
(H/T: @BrandonThurston)
