WWE Accused Of Carrying Out 'Sham' Investigation Into Vince McMahon Allegations

WWE have been accused of carrying out a "sham" investigation and facilitating a "cover-up" with their investigation into sexual misconduct and hush money allegations against Vince McMahon.

The accusation was made in a shareholders' lawsuit filed in November 2023, although aspects of the case have only just been made public. The Ohio Laborers’ Pension Fund, as well as a pension fund in Michigan and Professor Dennis Palkon of Florida Atlantic University, filed a lawsuit against WWE in Delaware Chancery Court accusing the WWE board of breaching their fiduciary duties by bringing Vince McMahon back in early 2023 and agreeing to the WWE-UFC merger, something they claim put McMahon's interests above those of other shareholders.

It was claimed in the lawsuit that other offers to purchase WWE were not fairly considered because these offers would have pushed Vince McMahon out of WWE, while the WWE-UFC merger under Endeavor allowed Vince to remain with WWE. This meant shareholders were given a less valuable deal, while the all-stock agreement with Endeavor secured Vince McMahon's future and "stuffed the pockets of his loyalists."

Vince McMahon was appointed TKO Executive Chairman as part of the WWE-UFC merger but he resigned from that position in January 2024 after he was accused of sex trafficking, sexual assault, and physical and emotional abuse by Janel Grant. McMahon remains a TKO shareholder, owning 4.7 per cent of the company.

Within aspects of the case that have just become public, it has been revealed by POST Wrestling's Brandon Thurston that the shareholders' lawsuit claims the special committee investigation into allegations of sexual misconduct and hush money against Vince McMahon was a "sham" and WWE "facilitated a cover-up".

The special committee investigation began in the Summer of 2022 after it emerged Vince McMahon had paid $14.6 million to women since 2006 to "suppress allegations of sexual misconduct and infidelity." It was also discovered that a further $5 million in unrecorded payments were made to the Donald Trump Foundation in 2007 in 2009 concerning Trump's appearances on WWE TV.

It was stated within a 10-Q filing on August 15, 2022 from WWE that the special committee investigation was "substantially complete". Minutes from a board meeting on August 14, 2022 included within the lawsuit suggest this was not the case, however.

The lawsuit states:

"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.'"

WWE announced in November 2022 within another 10-Q filing that the investigation into Vince McMahon was complete.

Janel Grant has previously accused WWE in her lawsuit - which also includes Vince McMahon and John Laurinaitis as defendants - of looking to sweep the allegations against Vince McMahon under the rug.

It was claimed within Grant's lawsuit that she received an email on June 13, 2022 from an attorney at Simpson Thacher & Bartlett LLP asking to speak to her about her time with WWE and the nondisclosure agreement she signed with WWE. Grant was also told that the special committee was, among other things, investigating "Mr. McMahon's relationship with Ms. Grant and the circumstances surrounding the settlement between [Ms. Grant], the WWE, and Mr. McMahon."

Grant allegedly stated that she was willing to participate in the investigation but the special committee never interviewed her.

Former WWE board member Jeff Speed claimed via Simpson Thacher & Bartlett LLP in January 2024 that the investigation reached out to Janel Grant.