WWE shareholder files lawsuit against Vince McMahon after he returns to company
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A WWE shareholder has filed a lawsuit against Vince McMahon after he returned to the company.
Long-time WWE figurehead McMahon retired in July after investigations were opened into claims he made hush payments to women over a 16-year period amid alleged sexual harassment allegations.
He then handed over the reins to daughter Stephanie and son-in-law Paul 'Triple H' Levesque.
But last week McMahon announced his intentions to return to the board and did indeed reinstate himself as executive chairman, as well as other former co-presidents Michelle Wilson and George Barrios, filling up positions.
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Stephanie, meanwhile, announced her resignation from her role as co-CEO and chairwoman.
The primary purpose of his return is to facilitate a potential sale of the company and its media rights.
There have been reports that the Saudi Arabia Public Investment Fund are a prospective buyer, with Comcast, Disney, Amazon, and Netflix also touted as potential suitors.
But in what could provide a spanner in the works, the Wrestling Observer reports that shareholder Scott Fellows, on behalf of himself and "others similarly situated" ,has filed a class action lawsuit to against McMahon.
It was filed on Tuesday night in Delaware's Chancery Court and claims that the 77-year-old, still the company's major shareholder, violated Delaware Law by taking the lead on major WWE corporate decisions and "adding his cronies to the Board."
Taking issue with McMahon hand picking and appointing his own people in positions, the suit says Fellows is taking action as a result of McMahon's"serial abuses of power".
Fellows alleges "breach of fiduciary duty in line with section 141 of the state's General Corporation Law".
The suit says: "McMahon lacks the power he purported to wield. Section 141(a) of the Delaware General Corporation Law (the “DGCL”) recognizes the inviolability of the board of directors’ power to make significant decisions respecting the business and affairs of the Company. The Board members have an unremitting obligation to discharge their fiduciary duties."
Fellows wants the bylaw changes from McMahon to be deemed invalid and to be compensated with cost and fees. Other copycat lawsuits could follow in due course.
Featured Image Credit: Alamy & Bloomberg Law
Topics: Vince McMahon, WWE
