WWE has been granted a pause in discovery in the lawsuit over how its move to ESPN Unlimited was promoted to fans.
According to PWInsider, a U.S. District Court approved WWE’s request to put the evidence gathering stage on hold as the companies argue that the claims should be handled through arbitration.
The lawsuit alleges that WWE, ESPN and BAMTech misled fans about how to watch WWE’s major events following their move to ESPN Unlimited in 2025.
ESPN and BAMTech, which were recently added to the case, argue that subscribers accepted terms of service containing Disney/ESPN’s arbitration clause when they signed up. WWE has also argued that the plaintiffs’ claims fall under that agreement.
The ruling does not settle those allegations or confirm that the case will move to arbitration. It allows discovery to remain paused while that issue is considered.
The court also addressed concerns raised by the plaintiffs about WWE’s handling of evidence in other cases.
“The Court was concerned to read, in the Plaintiffs’ supplemental brief, that WWE had been sanctioned for evidence spoliation in other cases.”
However, the court said those concerns did not justify allowing the requested discovery to proceed, while warning WWE of its responsibility to preserve relevant evidence.
“But in this case, the appropriate way to address that concern is to remind WWE of the severe consequences that can be imposed if relevant evidence is lost or destroyed after the duty of preservation attaches. To force WWE to undergo the broad and burdensome discovery that the Plaintiffs seek on behalf of themselves and their proposed class, when WWE evidently has a non-frivolous argument that those claims should be addressed in an arbitral forum on an individual basis and under potentially restrictive discovery procedures, would be a disproportionate response. While the Court understands the Plaintiffs’ concern, it is insufficient to deny a stay.”
The plaintiffs are seeking damages, legal fees and court orders to prevent the alleged conduct from continuing. Their requested relief includes:
“An award of actual, compensatory, and/or consequential damages, alternatively, an award of nominal damages (if and as necessary), an award of statutory damages (if and as permitted by law), an award of punitive damages (pursuant to Conn. Gen. Stat. §42-110g(a) and/or as otherwise permitted by law, an award of reasonable attorneys’ fees and expenses incurred in connection with this action (pursuant to Conn. Gen. Stat. 42-110g(d) and/or as otherwise permitted by law, an award of the costs of this action (pursuant to Conn. Gen. Stat. 42-110g(d) and/or as otherwise permitted by law), any injunctive relief necessary to preclude WWE from (a) continuing to violate CUTPA, (b) conspiring with ESPN to violate CUTPA, and/or (c) aiding and/or abetting ESPN in its violation(s) of CUTPA; and/or any other legal or equitable relief as the Court deems appropriate.”
No deadline has been set for a possible move to arbitration. The plaintiffs have requested a jury trial.
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