The Securities and Exchange Commission (SEC) announced on Friday that it had reached a settlement with WWE cofounder and former CEO Vince McMahon regarding two charges related to hush money payments. The settlement brings closure to a nearly three-year investigation into McMahon’s financial misconduct, though legal challenges from his alleged actions persist.
The SEC Settlement
The SEC’s investigation revealed that McMahon signed two undisclosed settlement agreements, one in 2019 and another in 2022, on behalf of himself and WWE. These agreements were not disclosed to WWE’s board, legal department, or auditors, leading to misstated financial information.
- 2019 Settlement: $3 million to a former employee to silence claims about her relationship with McMahon.
- 2022 Settlement: $7.5 million to an independent contractor to keep allegations against McMahon private.
McMahon agreed to the SEC’s settlement without admitting or denying the findings. The terms include:
- A $400,000 penalty.
- A reimbursement of $1,330,915.90 to WWE under the SEC’s “clawback provision.”
- A cease-and-desist order preventing further violations of the Securities Exchange Act.
According to the SEC, McMahon’s actions circumvented WWE’s internal accounting controls and led to financial misstatements in 2018 and 2021. WWE reissued its financial statements in August 2022 to correct the errors.
McMahon’s Response
In a statement to Front Office Sports, McMahon downplayed the SEC’s findings:
“The case is closed. Today ends nearly three years of investigation by different governmental agencies. In the end, there was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE. I’m thrilled that I can now put all this behind me.”
Ongoing Legal Battles
While the SEC case is resolved, McMahon remains embroiled in legal issues stemming from the settlements:
- Janel Grant’s Lawsuit: Grant, who received the 2022 settlement, alleges that McMahon sexually assaulted and trafficked her between 2019 and 2022. She is suing McMahon and WWE in Connecticut. Her attorney, Ann Callis, stated that the SEC’s findings bolster Grant’s case, asserting that the NDA McMahon coerced her to sign is unlawful.
- Federal Investigation: Federal prosecutors in the Southern District of New York had paused Grant’s lawsuit for a criminal investigation, but the stay was lifted last month.
- Additional Allegations: McMahon is named in another lawsuit accusing him and his wife, Linda McMahon, of enabling the sexual abuse of underaged boys by a former WWE ring crew chief. This case is currently stayed, pending a Supreme Court challenge in Maryland.
Fallout and WWE’s Future
The SEC’s investigation began in July 2022, prompting McMahon to step down from WWE. He returned in 2023 to oversee WWE’s merger with UFC and Endeavor to form TKO Group Holdings but resigned as executive chairman and from TKO’s board in January 2024. Despite selling off shares, McMahon still owns a significant stake in the $24 billion company.
WWE, its parent company TKO, and Endeavor did not respond to requests for comment on the settlement. McMahon’s future with WWE and the legal ramifications of his alleged actions remain uncertain.
Stay tuned as this story develops, with potential implications for WWE’s leadership and reputation.
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