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McMahon sexual misconduct overview:
- Who: Vincent K. McMahon has agreed to pay World Wrestling Entertainment Inc. $17.4 million.
- Why: He agreed to reimburse WWE for costs related to an investigation into sexual misconduct allegations against him.
- Where: The WWE is headquartered in Connecticut and chartered in Delaware.
Vincent K. McMahon, the founder and chairman of World Wrestling Entertainment Inc. (WWE) will reportedly reimburse the company $17.4 million for costs related to an investigation of sexual misconduct allegations, Law360 reports.
WWE engages in the professional marketing of wrestling and related merchandise globally. The company’s three main segments include media, live events, and consumer products.
On March 24, the WWE filed an 8-K with the U.S. Securities and Exchange Commission (SEC), notifying the agency that McMahon made the $17.4 million payment the day before.
The McMahon WWE reimbursement reportedly covers the cost of a sexual misconduct investigation that was conducted by a committee of the board of directors.
The board committee reportedly found that McMahon should repay millions of dollars the company spent to keep alleged McMahon sexual misconduct victims quiet.
The agreement provides that McMahon would pay $17.4 million to reimburse WWE for costs related to the investigation that were paid by WWE before Jan. 31.
In the SEC filing, WWE notes the agreement also requires McMahon to “review in good faith and reimburse” WWE for additional costs the company incurred after Jan. 31.
McMahon sexual misconduct allegations spur additional lawsuits
WWE stockholder Dennis Palkon recently sued McMahon and two directors on the company’s behalf for damages stemming from “rampant” McMahon sexual misconduct.
Palkon previously sued WWE for records to probe McMahon’s departure as WWE chairman and CEO last year stemming from the sexual misconduct allegations and hush money payments.
In Palkon’s lawsuit, he alleges McMahon paid $15 million to settle sexual misconduct claims with “serious questions about how Vince McMahon obtained and delivered those funds to his victims.”
On Dec. 20, McMahon announced his bid to return as WWE chairman and CEO.
The WWE reported more than $1 billion in revenue and $177 million in net income in 2021, according to the WWE’s annual report.
In 2016, more than 50 pro wrestlers filed a McMahon WWE class action lawsuit alleging the company concealed the long-term health effects caused by traumatic brain injuries.
What do you think of the McMahon sexual misconduct claims? Join the discussion in the comments!
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One thought on McMahon to repay WWE $17.4M for sexual misconduct investigation costs
Vince McMahon should be in prison.Firing his wrestlers in budget cuts to cover up his dirty deeds.