In the wake of an internal investigation, WWE employees are banned from trading stock according to a new report.
On July 22nd, Vince McMahon announced his retirement from WWE amidst an investigation into alleged sexual misconduct and hush money payments. On July 25th, the Wall Street Journal reported that a federal investigation into these allegations “hastened” his retirement, which an SEC filing actually calls a resignation.
It was also disclosed via the SEC filing that the company has made “a preliminary determination” regarding payments made between 2006 and 2022 that should have been recorded as business expenses. This includes amounts both already paid and to be paid in the future.
A total of $14.6 million is the reported amount paid by and due to be paid in the future by Vince McMahon. WWE will, as a result, reissue company financial statements for 2019, 2020, and 2021, as well as Q1 of 2022. They aim to reissue these statements by Tuesday, 9 August, though “there is no assurance that it will be able to meet this deadline”.
Now, a new report from Wrestlenomics sheds more light on the ramifications of these allegations and reveals that WWE employees are currently banned from trading stock in the company.
According to the report, Senior Vice President and Assistant General Counsel James Langham sent a memo to employees of the company that read as follows:
“Please be advised that, in light of recent developments, the Company’s trading window has closed effective immediately for all employees. Until further notice you are prohibited from any purchases or sales of Company securities. You are also instructed not to speak with others about this note.”
WWE stock rose nearly 10% on the first trading day following the news of Vince McMahon’s retirement. It is currently valued at $69.47 per share after trading closed on July 28th.