Vince McMahon recently rejoined WWE’s Board of Directors with the aim of selling his multi-billion-dollar company and negotiating new television deals. This return resulted in the resignation of his daughter, Stephanie McMahon, leaving Nick Khan as the sole CEO of the corporation.
However, since his return, Vince has faced multiple lawsuits filed by various individuals and entities, and the latest lawsuit was filed on January 26th in the Delaware Chancery Court by shareholder Dennis Palkon. The lawsuit demands WWE’s internal records to launch an investigation into allegations that Vince McMahon sexually assaulted employees and contractors over several decades and paid millions of dollars to silence these allegations.
“There are serious questions about how Vince McMahon obtained and delivered those funds to his victims,” the lawsuit states. It further suggests that Vince’s reinstatement as Executive Chairman of WWE’s Board displayed a “flagrant disregard for basic corporate governance norms.”
If the information provided in the lawsuit proves McMahon guilty of breaching his fiduciary responsibilities, the plaintiff intends to seek legal action, as stated in the lawsuit, “to bar Vince McMahon from ever serving on the WWE board again.”
Vince McMahon And WWE Facing Numerous Legal Challenges
WWE is currently facing three other lawsuits related to Vince’s return to the company.
According to Palkon’s lawsuit, if the information provided proves McMahon guilty of breaching his fiduciary responsibilities, “the plaintiff intends to achieve what the board wanted to, but could not in light of Vince McMahon’s thuggery [and initiate proceedings] to bar Vince McMahon from ever serving on the WWE board again.”
The controversy surrounding McMahon erupted last year when he was found to have paid out settlements for claims of sexual harassment with WWE funds over the last fifteen years. He eventually resigned from his position as CEO and Chairman of the Board. Even though McMahon made his shocking return at the beginning of 2023, the company is still dealing with the legal fallout from the scandal, as well as the reputation damage from the accusations.