WWE‘s investigation into the allegations against Vince McMahon is complete.
In June, the Wall Street Journal reported that the WWE board was investigating a secret $3 million settlement he agreed to a departing employee McMahon allegedly had an affair with. The Wall Street Journal published a second article in July, which reported that he agreed to pay more than $12 million to four women with WWE ties in order to “suppress allegations of sexual misconduct and infidelity.” The individuals involved reportedly “signed agreements that prohibit them from discussing potential legal claims against or their relationships.”
In the wake of these McMahon first stepped back from his duties and subsequently retired on July 22.
On November 2, WWE reported its third quarter 2022 revenue on its corporate website. In one portion, the company noted that the Special Committee’s investigation of the alleged misconduct is complete, and it cost $17.7 million and $19.4 million over the course of the “three and nine-month period” that ended on September 30, 2022.
The excerpt from the report is as follows:
As previously announced, a Special Committee of independent members of the Board of Directors was formed to investigate alleged misconduct by Vincent K. McMahon, the Company’s former Chairman and Chief Executive Officer, who resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest, and another executive, who is also no longer with the Company. The Special Committee investigation is now complete and the Special Committee has been disbanded. Management is working with the Board to implement the recommendations of the Special Committee related to the investigation. For the three and nine-month periods ended September 30, 2022, the Company’s consolidated pre-tax results include the impact of $17.7 million and $19.4 million, respectively, associated with certain costs related to the investigation. Please see the Company’s SEC filings, including, but not limited to, its annual report on Form 10-K/A and quarterly reports on Form 10-Q/A and Form 10-Q for further details and ongoing risks regarding this matter.
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