Lawsuit Filed Against WWE Seeking Internal Files To Investigate Claims Against Vince McMahon

WWE and Vince McMahon are being hit with another lawsuit.

According to Bloomberg, WWE investor Dennis Palkon has filed a lawsuit against WWE seeking internal files from WWE to investigate claims that McMahon “raped and sexually assaulted employees and contractors over the course of decades,” and then paid nearly $15 million to keep the accusations hidden.

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Palkon reportedly hopes to bar McMahon from the board. McMahon returned to the board on January 6, claiming he needed to return to help lead media negotiation rights as the controlling shareholder, and was subsequently voted as the executive chairman.

The suit against WWE claims “There are serious questions about how Vince McMahon obtained and delivered those funds to his victims. The suit also cites fears that McMahon’s comeback in January—when he staged a board “coup” after being forced out in July 2022—showed “a flagrant disregard for basic corporate governance norms.”

On June 15, 2022 the Wall Street Journal reported the WWE board was investigating a secret $3 million settlement that Vince McMahon reportedly agreed to pay to a departing employee with whom he allegedly had an affair, according to documents and people familiar with the board inquiry. In December 2022, the Wall Street Journal reported that McMahon was facing legal demands from two women who allege that he sexually assaulted them. It was reported on January 19 that McMahon reached a multi-million dollar settlement with Rita Chatteron, who accused McMahon of raping her in 1992.

The suit goes on to say, “that the rules do not apply to him, Vince McMahon removed three independent directors and re-appointed himself, as well as two of his longtime cronies. The apparent misconduct here is both myriad and extremely serious.”

Multiple lawsuits have been filed against McMahon since he has returned to the board.

The new complaint is the first of the suits to seek documents from WWE under a state law giving corporate investors broad inspection rights. The complaint claims McMahon “appears to have leveraged his position to prey on his subordinates to appease his sexual desires.”

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