As reported by PWMania.com, the planned trial in the lawsuit over the WWE/TKO merger was canceled in June, just days before it was scheduled to begin. Both parties announced the cancellation, citing a pending settlement.
In their second-quarter 2026 financial results, TKO disclosed that the WWE portion of the overall settlement totaled $105 million.
The lawsuit was filed in November 2023 against Vince McMahon, Nick Khan, Triple H, George Barrios, and Michelle Wilson. It alleged that the TKO merger caused damages to WWE shareholders by undervaluing the company. Additionally, it claimed that WWE’s investigation into McMahon regarding allegations of sexual misconduct was a “sham” and that McMahon manipulated the sale process to Endeavor for his own benefit. The lawsuit asserted that these actions ultimately breached the defendants’ fiduciary duty to the shareholders.
Here are the complete details:
“In early June 2026, the parties reached an agreement in principle to resolve all claims against all defendants. The overall settlement amount is expected to be primarily funded by insurance recoveries, with a portion being funded by WWE as a result of pre-existing indemnification obligations owed by WWE to the directors. WWE’s portion of the overall settlement amount is $105.0 million, which is expected to be funded by probable insurance recoveries of $75.0 million, resulting in an expected loss of $30.0 million. The net estimated loss is included within selling, general and administrative expenses in the consolidated statements of operations. As a result, the parties and Court cancelled the trial, which was scheduled to begin June 8, 2026. The parties are currently drafting a settlement agreement, which the Court must then review and approve.”
