Vince McMahon, Former WWE CEO, Reaches Deal with SEC Over Undisclosed Settlement Agreements
Former WWE CEO Vince McMahon has reached an agreement with the Securities and Exchange Commission in which he settled charges over undisclosed settlement agreements totaling $10.5 million. These agreements were made to prevent two women from revealing potential claims against him or the WWE. These terms were not disclosed to the WWE board, legal department, and others as required.
In January 2024, following a lawsuit accusing McMahon and another executive of sexual misconduct by a former employee, McMahon resigned from WWE’s parent company. He denied any wrongdoing and stepped down from his position as executive chairman of the board. The SEC highlighted that one settlement in 2019 and another in 2022 were implicated, resulting in McMahon failing to record these payments accurately, leading to financial misstatements within WWE.
The SEC order found that these undisclosed agreements caused an overstatement of WWE’s net income, affecting the 2018 and 2021 financial statements. Once these agreements were revealed, there was a restatement of WWE’s financials. McMahon, without admitting wrongdoing, agreed to cease-and-desist from violating specific provisions, pay a civil penalty of $400,000, and reimburse WWE approximately $1.3 million.
Reflecting on the settlement, McMahon stated that the outcome has put to rest any speculation about the nature of the investigations and the final resolution, which mostly focused on minor accounting errors related to personal payments made by him. Legal counsel representing Janel Grant, who accused McMahon of sexual battery and trafficking in a lawsuit, sees the SEC’s charges as confirmation that McMahon violated the law to conceal his behavior.
As this litigation continues, both sides are preparing to present their respective cases. McMahon has refuted Grant’s allegations, while prosecutors and legal teams are pressing forward. McMahon has been a central figure in WWE’s history, growing the company from small venues to professional sports stadiums. His legacy and contributions are a complex part of WWE’s storied rise to fame and success.
