The new lawsuit seeks internal WWE files on Vince McMahon’s financial scandal.
Vince McMahon abruptly quit WWE last summer during an internal investigation into alleged money payments. This led the company to restate previous financial results in order to account for “certain unrecorded expenses” made by McMahon.
Less than six months later, Vince decides he wants his power back, so he uses his influence as the controlling shareholder to force him back on the board even though the board originally voted against his return. Vince basically used his power to remove board members who weren’t playing ball, and now he’s back as CEO of WWE.
Three investor lawsuits were filed last month related to Vince’s controversial return to WWE, and now bloomberg He is reporting the details of a fourth such lawsuit.
Dennis Balcon is a WWE shareholder who is suing the company with the goal of permanently removing McMahon from the board of directors. In essence, this lawsuit describes McMahon as a thug who staged a shady coup against the WWE Board of Directors. The plaintiff is trying to get WWE to turn over the full internal investigation report, which was the basis for the board’s originally decision that Vince’s return was a very bad idea.
Here’s more from Bloomberg:
The new complaint is the first to request documentation from WWE under a state law that gives corporate investors broad search rights. Records cases, which often reflect an attempt to drum up allegations of credit violation, are usually brought before substantive cases alleging outright wrongdoing.
But the suit reflects the most serious allegations against McMahon, saying he “appears to have taken advantage of his position to assault his subordinates to satisfy his sexual desires.” He then used his control of the company to override the board’s ruling that he was unfit to lead it, according to the complaint.
If disclosure of records leads to breach of fiduciary claims, “plaintiff intends to achieve what the Board of Directors wanted, but could not in light of Vince McMahon’s bullying,” by initiating proceedings “to prevent Vince McMahon from ever serving on the WWE Board of Directors again.”, it says. suit.
What do you think of this, Cagesiders?
