Second Lawsuit Launched Following Vince McMahon’s WWE Return
A second lawsuit has now been launched on behalf of Detroit’s Firefighters and Police Officers as a result of Vince McMahon returning to WWE’s Board.
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.
WWE shareholder Scott Fellows has already launched a class action lawsuit in the wake of McMahon’s return to power claiming that the Executive Chairman 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.”
Now a second lawsuit has been launched by Detroit’s Police and Fire Retirement System. Sportico has noted that the suit filed in Delaware’s Court of Chancery has a request in it to be recognised as a class action and invites other WWE shareholders to join it. The potential suit could slow down the potential sale of the company.
Similarly to Fellows lawsuit, the Detroit Police and Fire Retirement System suit also claims that Vince McMahon is trying to “impose his personal will on WWE and its [board] by purporting to adopt a package of invalid and inequitable bylaw amendments that would hamstring the Board from making critical business decisions.”
New reports suggest that some in WWE feel that “the countdown is on” for Vince McMahon to assume full power and creative responsibilities once again.