Wrestlenomics’ Brandon Thurston is reporting that 2.1 million shares of WWE stock were sold on Wednesday, noting that the amount was 1.5 million shares more than an average trading day. According to Thurston, all of the stock was sold before news broke of Vince McMahon being investigated by the WWE board over cash settlements tied to numerous Non Disclosure Agreements (NDA) with former female employees, who were alleging misconduct by the WWE Chairman & CEO, as well as Head of Talent Relations John Laurinaitis.
Thurston goes on to share a section from the WWE Code of Business Conduct on insider trading, which reads:
The term “insider trading” refers to the practice of trading in securities while in possession of material non-public information, a practice which is prohibited under federal law. Any WWE Personnel trading while in possession of material information which he or she has reason to believe is not publicly available is acting contrary to Company policy and may be held liable for insider trading. Directly or indirectly “tipping” this information to another person who trades is also a violation of this policy. Information will be deemed “material” if it would be likely to influence a reasonable investor’s decision to buy, sell or hold securities. Any information about the advances, set-backs or over-all business plan of WWE or its business partners should be considered material. “Non-public” information includes any information that has not been made available to the public through a press release or a filing with the Securities and Exchange Commission. WWE Personnel with information about WWE or its business partners should consider the information “nonpublic” until the second full trading day following the wide-spread disclosure of that information.