There is an absolute power struggle prevailing in WWE, with the return of its founder, owner, and majority shareholder, Vince McMahon. His return has made a drastic impact on the management and certain working areas of the company. However, Vince recently faced a lawsuit from a former female WWE employee and it looks like he may be slapped with another one as well.
The investors of WWE Inc are leading litigation over Vince McMahon, making a shocking return. Moreover, they are also concerned about McMahon rescinding certain bylaws in an attempt to gain complete control and strip the board from its power.
This has led to three groups of shareholders suing Mr. McMahon, which includes a pension fund as well. The lawsuits in Delaware’s Chancery Court have accused Vince of his well-timed comeback to force his way into the negotiations for WWE media rights and threatening to withhold any support for a deal with his involvement.
The two investors who sued Vince McMahon including the Police & Fire Retirement System of the City of Detroit challenged McMahon’s decision to rewrite the company bylaws in his own favor. The third shareholder went even further by involving his previous sexual allegations.
Vince McMahon and other WWE members have not made an appearance in court yet. On the other hand, another investor is seeking to prove the bylaw claims declared correct in an attempt to take credit for the reform and gain a mootness fee in recognition to foil Vince McMahon’s plans.
“This consolidated litigation is narrow in scope, it is moot, and the only remaining litigation in this action should concern the application for a fee award,” they said in a court filing Monday.
The other group of investors, meanwhile—those suing over McMahon’s alleged history of paying to cover up sexual harassment accusations—are seeking to sever their case from the consolidated action. That could keep the bylaw-related claims alive, interfering with any fee request.
The pension fund and its co-plaintiff, investor Scott Fellows, are represented by Labaton Sucharow LLP, Friedlander & Gorris PA, Friedman Oster & Tejtel PLLC, and Kaskela Law PLLC.
The investors seeking to proceed separately, Carole Casale and Chrystal Lavalle, are represented by Christensen & Dougherty LLP and Scott & Scott Attorneys at Law LLP.
The case is In re World Wrestling Ent. Inc. Stockholders Litig., Del. Ch., No. 2023-0022, motion to dismiss as moot filed 1/23/23.”
Vince McMahon returned to WWE and was reinstated to the WWE Board of Directors as the Executive Chairman recently. According to multiple reports, he plans to sell his company to Saudi Arabia and negotiate media deals for WWE, which has been cited as the prime reason for his comeback to the global juggernaut.
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