TKO Group disclosed its Q2 financial earnings on Thursday and included in its SEC filing, the lawsuit brought against Vince McMahon and several others by Janel Grant. The summary of its legal proceedings, particularly concerning WWE, was as follows:
In June the previous year, a Special Committee of independent WWE board members was assembled to investigate alleged misconduct by then CEO, Vince McMahon. McMahon stepped down from all official roles with WWE on July 22, 2022, but retained a controlling interest as a stockholder and served as Executive Chairman until September 12, 2023. Even after the investigation concluded and McMahon’s resignation from the board in January 2024, the company might still face claims, inquiries, and regulatory enforcement related to these matters. On July 17, 2023, McMahon had received a federal grand jury subpoena, despite no charges yet being brought.
Furthermore, on January 25, 2024, a former WWE employee lodged a lawsuit against WWE, Mr. McMahon and another ex-WWE executive in a Connecticut District Court. She alleged sexual assault by McMahon and the assertion of Trafficking Victims Protection Act claims.
A claimed previous WWE stockholder, Laborers’ District Council and Contractors’ Pension Fund of Ohio, filed a certifiable class action on November 17, 2023 against McMahon on behalf of itself and former WWE stockholders. Similarly, another alleged stockholder, Dennis Palkon, took similar action on November 20, 2023. The two actions accused individual defendants of breaching fiduciary duty out of the ensuing transactions. Yet another claimed previous WWE stockholder, City of Pontiac Reestablished General Employees’ Retirement System subsequently joined the action on April 24, 2024.
The court combined the Laborers, Palkon, and Pontiac lawsuits under the title In re World Wrestling Entertainment, Inc. Merger Litigation on May 2, 2024. This is still in its early stages, with TKO, WWE, and EGH not required to respond until a lead plaintiff has been finalized.
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