Kemo
01-11-2023, 12:31 AM
Vince McMahon‘s dramatic return to WWE‘s Board of Directors could result in a lawsuit by shareholders.
The recent turmoil atop pro wrestling’s largest promotion has caused a lot of unease and uncertainty for WWE fans. McMahon ended his retirement and re-joined the company on Jan. 6 after stepping away following allegations of misconduct with female employees. His reasoning for his comeback was to help WWE in its effort to negotiate a TV rights deal or to sell the company.
However, McMahon’s return could lead to a lawsuit against himself and others in the company. PWInsider’s Dave Scherer reports that his friend, who is part of the group in the WWE shareholder lawsuit that was filed last year after the NDA allegations against Vince McMahon surfaced, claimed in an email his return could be a “…breach of a fiduciary lawsuit.”
“…You also may have seen the news this past week about Vince McMahon forcing his way back onto the board, along with a major board shakeup. As a result, we believe there is enough of a basis to bring a breach of a fiduciary lawsuit. We hope to file a complaint against McMahon and possibly other directors/officers for breaching their duties to WWE and its shareholders. We should have a draft for you to review in the next couple of days,” said the email.
While PWInsider’s Scherer reports that McMahon could be in breach of a fiduciary lawsuit, it’s worth pointing out that the email states that a complaint hasn’t been filed yet.
Based on the email, McMahon’s return goes against shareholders’ interest, which helps the case for a lawsuit. Despite the WWE Chairman’s belief that his return aids the company with a potential sale, the shareholder may disagree. An official complaint against the WWE Chairman could be filed if the email is valid.
If McMahon is found to have breached his commitment to his shareholders, he would have to pay for the damages he caused.
The recent turmoil atop pro wrestling’s largest promotion has caused a lot of unease and uncertainty for WWE fans. McMahon ended his retirement and re-joined the company on Jan. 6 after stepping away following allegations of misconduct with female employees. His reasoning for his comeback was to help WWE in its effort to negotiate a TV rights deal or to sell the company.
However, McMahon’s return could lead to a lawsuit against himself and others in the company. PWInsider’s Dave Scherer reports that his friend, who is part of the group in the WWE shareholder lawsuit that was filed last year after the NDA allegations against Vince McMahon surfaced, claimed in an email his return could be a “…breach of a fiduciary lawsuit.”
“…You also may have seen the news this past week about Vince McMahon forcing his way back onto the board, along with a major board shakeup. As a result, we believe there is enough of a basis to bring a breach of a fiduciary lawsuit. We hope to file a complaint against McMahon and possibly other directors/officers for breaching their duties to WWE and its shareholders. We should have a draft for you to review in the next couple of days,” said the email.
While PWInsider’s Scherer reports that McMahon could be in breach of a fiduciary lawsuit, it’s worth pointing out that the email states that a complaint hasn’t been filed yet.
Based on the email, McMahon’s return goes against shareholders’ interest, which helps the case for a lawsuit. Despite the WWE Chairman’s belief that his return aids the company with a potential sale, the shareholder may disagree. An official complaint against the WWE Chairman could be filed if the email is valid.
If McMahon is found to have breached his commitment to his shareholders, he would have to pay for the damages he caused.