:max_bytes(150000):strip_icc():focal(884x219:886x221)/Vince-McMahon-Retirement-07222-d6af61343f49418eb0fd167b4fca2a67.jpg "WWE Chairman Vince McMahon Settles SEC Investigation Amid Ongoing Assault Case")
WWE Chairman Vince McMahon Settles SEC Investigation Amid Ongoing Assault Case
On June 15, 2022, WWE Chairman Vince McMahon settled an investigation by the Securities and Exchange Commission (SEC), agreeing to pay $3 million in penalty fees for failing to disclose millions of dollars in payments to a former employee with whom he allegedly had an affair.
The SEC Investigation
The SEC's investigation focused on McMahon's failure to disclose the payments to the former employee, who was a paralegal at WWE, between 2015 and 2019.
The SEC alleged that McMahon made unrecorded payments totaling $3 million to the woman in exchange for her silence about their alleged affair. These payments were not disclosed to WWE's board of directors or shareholders.
The SEC also alleged that McMahon used company funds to pay for personal expenses, including travel and entertainment, and that he failed to disclose these expenses to the board or shareholders.
McMahon's Settlement
McMahon settled the SEC investigation without admitting or denying the allegations. He agreed to pay a $3 million penalty and to cooperate with the SEC's ongoing investigation.
The settlement does not resolve the ongoing lawsuit filed against McMahon by the former employee, who is alleging sexual assault and emotional distress.
Legal Implications
The SEC settlement is a significant development in the ongoing legal saga surrounding McMahon. It is the first time that the SEC has taken action against McMahon for his alleged misconduct.
The settlement could also have implications for the ongoing lawsuit filed by the former employee. The SEC's findings could be used as evidence in the lawsuit, which could strengthen the woman's case.
Impact on WWE
The SEC settlement and the ongoing lawsuit could have a significant impact on WWE. McMahon is the majority owner and Chairman of WWE, and his alleged misconduct could damage the company's reputation and financial performance.
WWE's stock price has already fallen in the wake of the allegations against McMahon. If the lawsuit is successful, WWE could be forced to pay damages to the former employee, which could further damage the company's finances.
Conclusion
The SEC settlement and the ongoing lawsuit are a serious blow to McMahon and WWE. The allegations against McMahon are extremely serious, and they could have a significant impact on his career and the company he has built.
It remains to be seen how the lawsuit will play out, but the SEC settlement is a clear indication that McMahon is facing serious legal challenges.
