The WWE figured that faking Vince McMahon’s death (yes, you morons, he’s not dead) last week was going to be a great way to create additional interest in the show. Unfortunately, lots of people are actually completely turned off the by the ridiculous storyline and continuous on-air blabber about how McMahon is “presumed dead” and the “federal investigation” that is surrounding the limo explosion. What the wrestling empire wasn’t expecting was a possible law suit.
According to the Securities and Exchange Act of 1934, the WWE is in violation because the fake death could have unfairly influenced investors.
Rule 10b-5, pursuant to Section 10(b) of the Securities and Exchange Act of 1934, prohibits misleading statements or omissions of material fact in connection with the purchase or sale of any security, and that includes press releases that intentionally and also, in most courts, recklessly mislead investors.
Now, we have no idea if this will actually end up heading to court, but hopefully it will make the writers at WWE think twice before they subject their audience to another horrible, horrible storyline. Maybe the next time Vince needs a vacation, they will just write him off the show instead of killing him in an explosion. And you know he’s gonna show up in a month or two; talk about another lame plot. But, still, we can’t wait to see how pathetically they try to pull that off.
[Sports Law Blog]: Did Vince McMahon’s Fake Death Violate Security Laws?