Former shareholders of Endeavor Group Holdings face a critical deadline. Multiple law firms are urging investors to step forward as lead plaintiffs in a consolidated class action by March 18, 2026. The lawsuit alleges that the terms of the company’s acquisition by the private equity firm Silver Lake were unfair to minority shareholders and were founded upon misleading disclosures.
Allegations of a Flawed Valuation Process
Central to the legal challenge is the buyout price of $27.50 per share. Legal representatives, including Rosen Law Firm and Pomerantz LLP, contend that the company’s true intrinsic value was obscured. The plaintiffs argue that the definitive proxy statement issued in January 2025 contained significant omissions. Specifically, they allege insufficient disclosure of conflicts of interest related to board compensation and within the special committee that evaluated the deal.
Furthermore, the valuation relied on a fairness opinion from March 2024, which the complaint asserts was materially outdated by the time the transaction closed. Another key allegation is the absence of a majority-of-the-minority approval provision. This, the suit claims, effectively diluted the rights of public shareholders in favor of locking in the $27.50 per share price.
Should investors sell immediately? Or is it worth buying Endeavor Holdings?
TKO Group’s Performance Fuels Valuation Questions
Doubts regarding Endeavor’s valuation are amplified by the operational trajectory of its key subsidiary, TKO Group Holdings, which controls UFC and WWE. As Endeavor held a controlling stake in TKO, the subsidiary’s financial performance was a major component of the parent company’s worth.
The upcoming earnings report from TKO, scheduled for Wednesday, February 25, is now a focal point. Market analysts project a substantial revenue surge of approximately 59% to around $1.02 billion for the fourth quarter of 2025. The plaintiffs maintain that the $27.50 acquisition price for Endeavor failed to adequately account for this significant growth potential within its subsidiary. They point to TKO’s robust revenue momentum as evidence supporting their claim of an undervalued buyout.
Investors who sold their Endeavor shares between January 15 and March 24, 2025, are eligible to participate in the action. The window to apply for lead plaintiff status closes on March 18. The TKO quarterly results on February 25 are expected to provide a clear indicator of how the core assets’ earning power has evolved since Endeavor’s privatization.
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