TKO Group Holdings is under investigation for breaches of fiduciary duty; Current shareholders are urged to contact BFA Law

NEW YORK, NY / ACCESSWIRE / October 26, 2024 / Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TKO Group Holdings, Inc. (NYSE:TKO), its board of directors and its majority shareholder for possible breaches of fiduciary duty.

If you are an owner of TKO Group Holdings, we encourage you to get more information https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc.

Examination details:

TKO is controlled by Endeavor Group Holdings, Inc. (“Endeavor”) as it owns 53.6% of the total voting power of the Company’s voting shares. Endeavor has appointed a majority of directors to TKO’s board. Because of its control, Endeavor can influence TKO to engage in conflicting transactions and control the outcome of TKO’s corporate actions that would normally require shareholder approval.

On October 24, 2024, TKO announced that it had entered into a transaction agreement with Endeavor Operating Company, LLC, a subsidiary of Endeavor, pursuant to which TKO agreed to acquire Endeavor’s Professional Bull Riders, On Location and IMG businesses for $3.25 billion -dollars in shares of the Company (the “Acquisition”). Through the acquisition, Endeavor will increase its ownership interest in TKO from approximately 53% to 59%. Minority shareholders have no say in the takeover as Endeavor approved the takeover through written consent without a minority vote.

BFA believes the acquisition was a contradictory transaction that may have resulted in the company overpaying for Endeavor’s business. Specifically, TKO’s stock price fell more than 5% when the acquisition was announced and would likely have fallen further had TKO not simultaneously announced a $2 billion stock repurchase program. Given Endeavour’s control over TKO, BFA believes that TKO minority shareholders may have legitimate claims for breach of fiduciary duty against TKO’s board of directors and/or Endeavor.

Click here if you are an owner of TKO Group Holdings: https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc.

What can you do?

If you are a current owner of TKO Group Holdings shares, you may have legal options and may be required to provide your information to the company.

All representations are made on a contingency fee basis, there are no costs to you. The shareholders are not responsible for any court costs or litigation costs. The Company will seek court approval for any fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc

Or contact:
Ross Shikowitz
[email protected]
212-789-3619

Why Bleichmar Fonti & Auld LLP?

Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder lawsuits. It was named one of the top five plaintiff law firms by ISS SCAS in 2023 and its attorneys were named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Recent notable successes include BFA being valued at over $900 million by the board of Tesla, Inc. (pending court approval) and $420 million by Teva Pharmaceutical Ind. Ltd. has requested back.

For more information about BFA and its attorneys, visit https://www.bfalaw.com.

https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc

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SOURCE: Bleichmar Fonti & Auld LLP