Class action lawsuit filed following Vince McMahon’s WWE return
WWE is already facing issues regarding Vince McMahon's return to the company.
On January 6, the sports entertainment giant announced that Mr. McMahon was returning to the board of directors to help facilitate the sale of the company this year. While a potential sale was enough to make Wall Street happy regarding WWE's stock, others are pretty upset about this latest development.
According to Mike Leonard of Bloomberg Law, McMahon is being sued by a WWE shareholder in Delaware's Chancery Court. He is accused of "wielding his 81% voting control to oust three board members, replace them with loyalists, and push through bylaw changes that would impose his will on the board and WWE.”
The proposed class action states the following:
"McMahon timed his return to seize control of upcoming negotiations over the company’s expiring media rights, the “lifeblood” of the business, and forced his way back by leveraging a threat to withhold support for any deal reached without his participation."
Requests for comment from WWE were not returned to Bloomberg on Wednesday when they reached out.
A shareholder has sued Vince McMahon in Delaware’s Chancery Court, accusing him of wielding his 81% voting control to oust three board members, replace them with loyalists, and push through bylaw changes that would “impose his will on the board and WWE.”
news.bloomberglaw.com/esg/vince-mcma… https://t.co/is63eiytmP
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Stephanie McMahon departed WWE prior to the announcement that Vince McMahon was once again the Executive Chairman of the board
Yesterday WWE announced that the Board of Directors unanimously elected Vince McMahon as the Executive Chairman of the board once again.
But the vote took place after Vince McMahon's daughter Stephanie tendered her resignation to the company.
Last night Stephanie McMahon took to social media to announce the unfortunate news. Tweeting out:
"Then. Now. Forever. Together," Stephanie McMahon wrote.
Despite initial worries from the WWE Universe, Triple H is still listed as the company's chief content officer.
Then. Now. Forever. Together. https://t.co/8dqr5reIiv
What do you make of this class action lawsuit? Do you think WWE is going to have a rough time going forward due to the return of Mr. McMahon? Let us know your thoughts by sounding off in the comments section below.