A lawsuit filed by WWE shareholders has revealed new details about how the companys board reacted to allegations against Vince McMahon, as it accused WWE of covering up McMahons misconduct investigation.
According to Brandon Thurston of Wrestlenomics, in November 2023, shareholders sued WWE, claiming McMahon influenced the sale process to benefit himself over other shareholders. The lawsuit includes pension funds from Ohio and Michigan, as well as university professor Dennis Palkon.
It was noted that legal documents from the case include board meeting minutes, which shareholders obtained through a legal request. These documents show that board members Man Jit Singh and Ignace Lahoud tried to resign the day after The Wall Street Journal published its first report on McMahon in June 2022.
However, Stephanie McMahon convinced them to stay. Soon after, Vince McMahon stepped down temporarily but still controlled WWEs creative direction and appeared on TV. Meanwhile, Stephanie McMahon took over as interim CEO and chairwoman.
In December 2022, McMahon informed the board that he wanted to return. The board initially rejected this idea, but McMahon used his voting power to force his way back, claiming his return was necessary to explore selling the company.
After he rejoined, Singh and Lahoud resigned. McMahon also removed JoEllen Lyons Dillon, Jeffrey Speed, and Alan Wexler from the board, replacing them with former WWE presidents George Barrios and Michelle Wilson. By January 10, 2023, WWEs board unanimously voted McMahon as Executive Chairman.
The documents also reveal that Nick Khan, Paul Levesque (Triple H), and board member Steve Koonin originally opposed McMahons return but later changed their stance. Board member Steve Pamon skipped the vote, while Michelle McKenna abstained. It is unclear if Stephanie McMahon participated, but she resigned from WWE shortly after.
A key part of the lawsuit claims that WWEs internal investigation into McMahons misconduct was a sham and that the company helped cover it up. A WWE financial filing from August 15, 2022, stated that the investigation was substantially complete.
However, board meeting minutes from August 14 suggest otherwise, as discussions about next steps were still ongoing. Even after the filing, the special committee continued to meet, with new developments being discussed on August 23.
The lawsuit also alleges that some buyers were willing to cash out all shareholders, but the deal with Endeavor mainly benefited top WWE executives with big bonuses and secured McMahon a position in the new company.
Subpoenas have been issued to several entities, including K&L Gates, J.P. Morgan, the Abu Dhabi Investment Authority, Liberty Media Corporation, and Vestry Light, a firm specializing in sexual misconduct cases that lists WWE as a client.
This also comes after Vince McMahons lawyer recently claimed that the federal investigation against Vince McMahon was dropped. Nevertheless, with these allegations surfacing, it remains to be seen how WWE and its leadership will respond in the coming weeks.
What are your thoughts on this lawsuit? Do you believe WWEs board mishandled the situation, or do you think McMahons return was necessary for the companys future? Share your opinions in the comments below!
