WWE is facing a major shareholder lawsuit that could result in hundreds of millions of dollars in damages tied to the company's sale to Endeavor and the formation of TKO Group Holdings.

As reported previously, a group of WWE shareholders has filed legal action against former WWE Chairman Vince McMahon, WWE President Nick Khan, Chief Content Officer Paul "Triple H" Levesque, and former executives George Barrios and Michelle Wilson. The lawsuit alleges that WWE's internal investigation into sexual misconduct claims against McMahon was not conducted properly and claims that McMahon influenced the company's sale process to benefit himself.

According to a report from Brandon Thurston of POST Wrestling, attorneys representing the shareholders have submitted an expert analysis that estimates potential damages between $466 million and $957 million, not including interest that has accumulated since the WWE-Endeavor merger was completed in 2023.

The plaintiffs argue that WWE was undervalued during negotiations that led to the creation of TKO. Under the finalized agreement, Endeavor received a 51 percent stake in TKO, while former WWE shareholders retained 49 percent ownership. Because Endeavor secured the larger share, it gained majority control of the new company.

Shareholders bringing the lawsuit contend that WWE's value justified a larger ownership stake in TKO, claiming they should have received between 53 percent and 57 percent of the combined company. They are seeking compensation based on the difference between what they believe shareholders should have received and the ownership structure that was ultimately approved.

As part of their argument, the plaintiffs point to internal Endeavor documents prepared shortly before the transaction was finalized. One presentation dated March 22, 2023, reportedly stated that delaying the merger until after WWE completed its next media rights negotiations could weaken Endeavor's position because the ownership split would become less favorable.

The damages analysis was prepared by financial economist James L. Canessa in 2026 on behalf of the shareholders. If the plaintiffs ultimately prevail, any monetary award would be distributed proportionally among eligible shareholders who held WWE stock during a period that has not yet been officially defined.

The defense has challenged those findings. Experts retained by the defendants argue that Canessa's valuation fails to account for the financial benefits created by combining WWE and UFC under one corporate umbrella. Their report cites projected cost savings, including operational efficiencies and staffing reductions, as well as new revenue opportunities generated by the merger.

According to the defendants' analysis, once those synergies are factored into the equation, WWE's ownership share could have been worth as little as 48.1 percent of TKO. They maintain that WWE shareholders received a fair, and potentially favorable, outcome under the terms of the deal.