Board Investigation Reported
Former WWE Chairman and CEO Vince McMahon is at the center of an ongoing investigation into millions of dollars paid to former female employees to silence allegations of sexual abuse, harassment and other misconduct. increase.
The improper payments were exposed by The Wall Street Journal. It was first reported in June that the WWE board of directors had launched an investigation into paying $3 million to a former employee McMahon had an affair with.
A board investigation has reportedly uncovered further confidentiality agreements with former WWE employees, alleging misconduct by McMahon and then-head of talent relations John Laurinatis.
Subsequent SEC filings revealed that McMahon has authorized $14.6 million in total payments or adjustments to future payments between 2006 and 2022.
The Wall Street Journal detailed allegations that McMahon paid $7.5 million to a former female talent who forced him to have sex with her. I was dismissed.
An investigation found that McMahon used personal funds to make the payments. However, according to WWE, the payment was for his WWE benefit and should be recorded as such.
As a result, the company amends its previous financial reports to reflect the payment. The study also examines WWE‘s HR programs and company culture as a whole.
On July 22, McMahon announced his retirement from WWE, stepping down as chairman and CEO of the company. WWE also parted ways with Laurinaitis.
More Payments By McMahon Uncovered
McMahon has officially retired from WWE, but his past actions still cast a shadow over the company. An investigation into his behavior uncovered further inappropriate spending.
His latest SEC filing for WWE on Tuesday revealed his additional $5 million payment McMahon made to his two others. The company said the payment was unrelated to the initial allegations that led to the Special Committee’s investigation.
Unrecorded costs associated with McMahon now amount to $19.6 million, and the company he once ran must now clean up the financial mess. As a result, the filing of WWE‘s second quarter financial report has been delayed.
WWE plans to amend its financial statements for the first quarters of 2019, 2020, 2021 and 2022 to reflect McMahon’s inappropriate spending. , and internal controls.
The SEC and federal prosecutors are investigating McMahon’s payments. At least eight law firms are also investigating whether WWE engaged in illegal business practices at the expense of investors.
