Investor Lawsuit Filed Following Vince McMahon’s Return as WWE Chairman
Vince McMahon, the head of WWE Inc., is the subject of an investor lawsuit that alleges he illegally took control of the board of directors after returning to the company in January. The suit, which was filed in Delaware's Chancery Court, claims that the CEO used his 81% voting control to remove three board members and replace them with supporters, as well as to pass bylaw revisions that would give him more power.
A disagreement took place Tuesday involving Vince McMahon, the former chairman and CEO of WWE, and the current administration of the professional wrestling organization.
No details regarding the dispute were made available.
A spokesperson for McMahon and WWE did not immediately respond to a request for comment Wednesday.
The disagreement comes around six months after McMahon resigned from his position following numerous sexual harassment allegations against him over a period of more than 15 years. The accusations claimed that he had paid approximately $12 million in an effort to maintain secrecy about the complaints.
Vince McMahon has recently reasserted his position as the head of WWE's royal family, a role he held for decades on and off screen. His daughter, Stephanie McMahon, stepped down as co-CEO and chairwoman this week, and is married to another high-ranking executive, former WWF/WWE champion Paul “Triple H” Levesque.
According to the class action, Vince McMahon returned in an effort to take charge of upcoming negotiations over the expiring media rights, which make up an essential part of the company's operations, by indicating that any agreement made without his involvement would not be endorsed. The lawsuit goes on to allege that this move to seize exclusive control of major corporate decisions by placing his allies on the board violates Delaware laws.
An investor has brought a legal action against WWE, alleging breach of fiduciary duty and violation of Section 141 of the Delaware General Corporation Law. The complaint claims that the company illegally changed its bylaws to entrench its current management, to the detriment of thousands of shareholders who hold 43.3 million WWE shares. The plaintiff seeks to have the changes invalidated, as well as cost and fees from the company. Scott Fellows, the investor leading the case, is being represented by the law firms of Labaton Sucharow LLP, Friedlander & Gorris, PA, Friedman Oster & Tejtel, PLLC and Kaskela Law LLC.
A disagreement took place Tuesday involving Vince McMahon, the former chairman and CEO of WWE, and the current administration of the professional wrestling organization.
No details regarding the dispute were made available.
A spokesperson for McMahon and WWE did not immediately respond to a request for comment Wednesday.
The disagreement comes around six months after McMahon resigned from his position following numerous sexual harassment allegations against him over a period of more than 15 years. The accusations claimed that he had paid approximately $12 million in an effort to maintain secrecy about the complaints.
Vince McMahon has recently reasserted his position as the head of WWE's royal family, a role he held for decades on and off screen. His daughter, Stephanie McMahon, stepped down as co-CEO and chairwoman this week, and is married to another high-ranking executive, former WWF/WWE champion Paul “Triple H” Levesque.
According to the class action, Vince McMahon returned in an effort to take charge of upcoming negotiations over the expiring media rights, which make up an essential part of the company's operations, by indicating that any agreement made without his involvement would not be endorsed. The lawsuit goes on to allege that this move to seize exclusive control of major corporate decisions by placing his allies on the board violates Delaware laws.
An investor has brought a legal action against WWE, alleging breach of fiduciary duty and violation of Section 141 of the Delaware General Corporation Law. The complaint claims that the company illegally changed its bylaws to entrench its current management, to the detriment of thousands of shareholders who hold 43.3 million WWE shares. The plaintiff seeks to have the changes invalidated, as well as cost and fees from the company. Scott Fellows, the investor leading the case, is being represented by the law firms of Labaton Sucharow LLP, Friedlander & Gorris, PA, Friedman Oster & Tejtel, PLLC and Kaskela Law LLC.
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