Vince McMahon has caused major upheaval in the landscape of WWE in recent months.
Back in July, he shocked the world by announcing his retirement from WWE amidst an investigation into alleged sexual misconduct and hush money payments. In the wake of his retirement, his daughter Stephanie McMahon was named co-CEO of the company alongside Nick Khan, while Triple H now serves as Chief Content Officer.
However, WWE was in for more changes when on January 5th, Vince McMahon announced that as majority shareholder, he was electing himself back to the WWE Board of Directors along with former co-presidents Michelle Wilson and George Barrios. This return was seen as unwelcome by many and was said to be in order to facilitate the sale of the company.
Days later, Stephanie McMahon announced that she was resigning from the company, leaving Nick Khan as sole CEO and abdicating her spot on the Board of Directors. After news of Stephanie’s resignation became public, it was announced via a press release that Vince had been unanimously elected Executive Chairman of the Board. According to a recent report, he is free to act without the approval of the other shareholders when it comes to certain decisions.
The Detroit Police and Fire Retirement System Is Suing Vince McMahon Over His Return To WWE
Vince’s return to the company after such a short retirement has sparked controversy, not only because of the nature of the allegations against him but also due to the way he forced his way back in despite the overwhelming consensus that he was unwelcome.
According to a new report from Sportico, the Detroit Police and Fire Retirement System is suing McMahon over his WWE return, seeking a declaration that would block him from wielding power on the Board of Directors. The lawsuit could hinder the sale of the company.
The complaint filed states that McMahon was in breach of his fiduciary duties to his shareholders and is attempting 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.” The complaint also notes that McMahon has 81% of the voting power in the company.
It’s documented in the report that the complaint makes note of McMahon’s attempt to return to WWE in December, when he was told by the Board of Directors, “Your return to the Company at this time would not be prudent from a shareholder value perspective [given that] government investigations into your conduct by the U.S. Attorney’s Office and SEC are still pending.”
The Police and Fire system asserts that McMahon’s return violates both Section 141 of the Delaware General Corporation Law and WWE’s charter.
This lawsuit is similar to another complaint recently filed by company shareholder Scott Fellows.