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Vince McMahon’s WWE Return Results in an Investor-Led Legal Challenge

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After his reinstatement as WWE Chairman, Vince McMahon faces legal action from a company shareholder as the fallout from his return continues.

Following the shock reinstatement of Vince McMahon as WWE Executive Chairman as he reportedly aims to facilitate a sale of the company, the longtime owner of the company faces legal action from an investor over how he placed himself back in power.

A report from Bloomberg Law states that a WWE shareholder filed litigation in Delaware’s Chancery Court, alleging McMahon illegally used his 81 percent voting control to sweep aside three board members and install loyalists to him, allowing him to put himself back in the chairman seat. According to the lawsuit, McMahon forced through changes allowing the 77-year-old to “impose his will on the board and WWE.”

RELATED: Vince McMahon Officially Reinstated on WWE’s Board of Directors

The class action lawsuit also claims McMahon timed his return to exert full power over media rights negotiations, threatening to withhold any support for a deal without his participation in proceedings. The lawsuit states McMahon, who retired last July, used his influence to

“take complete personal control over any major corporate decision,” by adding his “cronies” to the boardroom, violating Delaware law.

Vince McMahon Is Back at WWE

The ousted WWE CEO’s return to the company’s board of directors was confirmed by Stephanie McMahon, Nick Khan and Paul “Triple H” Levesque on Jan. 6 in a move that stunned the wrestling world. Stephanie, who acted as Co-CEO and Chairwoman in her father’s absence, resigned from her positions and released a statement on Twitter expressing her gratitude for being allowed to lead a business she’s been involved with on and off since her childhood. Shortly after this announcement, Vince McMahon’s reinstatement as Executive Chairman was confirmed.

On Jan. 10, multiple reports stated Vince McMahon and WWE were on the verge of completing a sale of the company to Saudi Arabia’s Public Investment Fund (PIF) — reports that have since been debunked by insiders such as Ariel Helwani. Though McMahon and company are reportedly exploring all options ahead of a potential sale, the leaking of Saudi Arabia’s potential involvement has led some high-level WWE talent to consider leaving if the Saudi-led investment fund ends up winning ownership. The PIF, who is chaired by the Crown Prince and Prime Minister of Saudi Arabia Mohammed bin Salman, also owns English Premier League club, Newcastle United and bankrolls LIV Golf, which has been paying huge sums to lure talent away from the PGA.

RELATED: WWE’s Vince McMahon Faces New Sexual Assault Charge, Lawsuits

McMahon’s retirement last year came amid multiple reports he paid hush money to cover up alleged affairs with former employees. The Executive Chairman also faces sexual assault allegations stemming from multiple women including former WWE official Rita Chatterton stemming from an alleged incident in 1986. He previously served as CEO and Chairman of the WWE from 1982 to 2022.

There have also been questions about what the future of Levesque will be with Vince coming back and Stephanie stepping down. Levesque has taken creative control since Vince’s departure, getting rave reviews from fans and wrestling insiders since handling the on-screen product. Following Vince’s reinstatement, WWE reassured that Levesque will stay in his position as the creative lead.

Source: Bloomberg Law

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