A WWE shareholder has launched legal action against Vince McMahon after McMahon’s sensational return to power as Executive Chairman.
Vince McMahon stunned the wrestling world in July 2022 when he announced his retirement as WWE Chairman and CEO amid an investigation into alleged sexual misconduct and ‘hush money’ payments made to female former employees of the company.
In the first week of 2023, McMahon launched an audacious attempt to get back power, using his position as majority shareholder to install himself and former WWE co-Presidents George Barrios and Michelle Wilson on the Board of Directors, removing three current members at the same time. Two other members of the Board then quit before Stephanie McMahon announced her resignation as WWE Chairwoman and co-CEO.
The remaining members of the Board then installed Vince McMahon as Executive Chairman. But all this boardroom chess may come at a cost as a WWE shareholder has launched legal action against McMahon in the state of Delaware.
The court docket states that Scott Fellows believes that McMahon is trying to “hamstring the Board and prevent it from undertaking significant time-sensitive decisions respecting some of the most important properties of the Company” and that McMahon “has breached his fiduciary duties as a controlling stockholder.”
The case states that a Stockholder Approval Amendment has the effect of “muzzling the Board” in all circumstances unless approved by Vince McMahon himself and says it “prevents the Board and management from discharging their fiduciary duties.”
The class action case has been launched on behalf of all Class A stockholders of WWE shares, meaning that many more people could look for legal and financial restitution as a result of McMahon’s actions.