WWE Accused Of Conducting “Sham” Investigation Into Vince McMahon
WWE is accused of “facilitating a cover-up” of Vince McMahon’s conduct.
In June 2022, Vince McMahon stepped down as WWE CEO and Chairman after allegations of sexual misconduct were made public. Crucially, McMahon retained creative control over WWE’s output, but he quickly retired a month later. His position was subsequently filled by Stephanie McMahon and Nick Khan.
During this period, the company launched an investigation into McMahon and his conduct.
However, McMahon attempted to rejoin the Board of Directors in December, only to have his return blocked. Not to be denied, McMahon used his voting power to reinstate himself onto the Board in January 2023 and promptly removed members JoEllen Lyons Dillon, Jeffrey Speed, and Alan Wexler and replaced them with George Barrios and Michelle Wilson. He was then unanimously elected “Executive Chairman of the Board.”
McMahon’s return sparked the resignations of Ignace Lahoud and Man Jit Singh, and just days after he was announced as Chairman, Stephanie McMahon also resigned.
McMahon claimed his return was to help facilitate the sale of the company, and in April 2023 it was announced that WWE would merge with UFC under the Endeavor umbrella. This merger was officially completed in September.
In the wake of the deal, a shareholder lawsuit was filed against WWE in November, claiming that Vince McMahon had manipulated the sale process.
WWE Accused Of Vince McMahon Cover-Up
As noted by Brandon Thurston of Wrestlenomics, (h/t POST Wrestling) several aspects of that case have now been made public, along with excerpts of “meeting minutes” from the Board of Directors.
In these minutes it’s revealed that Ignace Lahoud and Man Jit Singh tried to resign in June 2022 when the allegations against McMahon were first reported. However, they were talked into staying by Stephanie McMahon.
In July, company directors Connor Schell and Erika Ayers Badan were among those who also left their positions, although their departures are listed as:
“not due to any dispute or disagreement with the Company, its management or any matter relating to the Company’s operations, policies or practices.”
Interestingly, the meeting minutes confirm that Triple H, Nick Khan, and Steve Koonin “reversed course” in January 2023, after initially being part of the Board’s decision to block Vince’s return. Board member Steve Pamon didn’t attend the vote on McMahon’s return, and Michelle McKenna abstained. It remains unclear whether Stephanie participated in the vote.
A major part of the lawsuit against WWE centres around the company’s investigation into McMahon being a “sham,” alleging it “facilitated a cover-up.”
In a legal filing on August 15, WWE claimed that the investigation was “substantially complete.” However, minutes from just 24 hours earlier suggest that this wasn’t the case.
“Special Committee minutes show that just the day prior, August 14, 2022, the Special Committee ‘reviewed and considered next steps in the investigation.’ The minutes say nothing about an investigation about to wrap up. Even after the [quarterly report] was filed, the Special Committee continued to meet. On August 23, 2022, the Special Committee’s counsel brought up ‘new developments’ and discussed ‘potential next steps.”
The lawsuit also claims that other bidders wanted to “cash out all shareholders,” while Endeavor’s bid focused on retaining Vince McMahon and securing large bonuses for top executives.
As a result of the deal with Endeavor, the following bonuses were made public.
Nick Khan netted a $15 million bonus as a result of the merger while long-time Executive Producer & Chief, Global Television Distribution Kevin Dunn received $7 million. Both Triple H and WWE CFO Frank Riddick III received $5 million each.
As highlighted by Thurston, subpoenas have been issued to several entities including K&L Gates, J.P. Morgan the Abu Dhabi Investment Authority, and Vestry Laight. The latter is a firm specialising in sexual misconduct allegations.