The Securities and Exchange Commission announced Friday that World Wrestling Entertainment co-founder Vince McMahon will pay more than $1.7 million for allegedly failing to disclose payment agreements related to sexual assault allegations.
Meanwhile, the woman suing McMahon and WWE said she is pursuing a civil lawsuit related to the allegations.
The SEC said McMahon circumvented WWE’s internal accounting controls and caused material misstatements in the company’s 2018 and 2021 financial statements.
The SEC added that McMahon agreed to the settlement without admitting or denying the findings. He will pay a civil fine of $400,000 and repay WWE approximately $1,331,000.
“Corporate executives enter into important contracts on behalf of the companies they serve and share that information with corporate management and auditors,” Thomas P. Smith Jr., deputy regional director of the New York office, said in a statement. It cannot be withheld.”
Mr. McMahon issued the following statement on Friday:
“The case has been solved. Today marks the end of a nearly three-year investigation by various government agencies. There has been much speculation about what exactly the government will investigate and what the outcome will be. Today’s As the resolution shows, much of that speculation was misplaced and misleading, as it turns out, I’m the CEO of WWE. There was nothing other than a minor accounting error regarding a personal payment I made several years ago. I’m excited to now be able to put all of this behind me.”
Last month, U.S. prosecutors said they would continue to pursue a criminal investigation into McMahon while a civil lawsuit filed by a former WWE employee alleging sexual assault and human trafficking proceeds.
A Justice Department spokeswoman did not respond to a request for comment.
An attorney for former WWE employee Janelle Grant, who filed the civil suit, said in a statement that Grant intends to move forward with her lawsuit against McMahon, WWE and former WWE executive John Laurinaitis.
“During his time leading WWE, Vince McMahon acted as if the rules didn’t apply to him, and now he’s trying to cover up horrific acts, including human trafficking,” attorney Anne Callis said. It was confirmed that he had repeatedly violated the law.”
“The SEC’s complaint proves that the NDA Vince McMahon forced Ms. Grant to sign was a violation of the law, and her case must be heard in court.” While the District Attorney continues to investigate the criminal investigation, we look forward to moving forward with the criminal investigation.” Ms. Grant’s civil lawsuit regarding sexual exploitation by Vince McMahon and John Laurinaitis in WWE new evidence of. ”
The SEC alleges that in exchange for not filing charges, McMahon failed to disclose $3 million in payments to former WWE employees and $7.5 million in payments to female independent contractors.
As a result, WWE overstated its 2018 net income by approximately 8% and its 2021 net income by approximately 1.7%, the agency announced.
The SEC has not disclosed the recipient of either payment. In 2022, the Wall Street Journal reported that McMahon paid a former WWE employee $3 million to quiet sexual assault allegations.
Two years later, that employee, Grant, filed explosive sexual assault and human trafficking charges against McMahon and WWE, and McMahon resigned as executive chairman of WWE’s parent company, TKO, and was suspended from all employment with WWE. I had to give up my role.
The Wall Street Journal reported that Mr. McMahon paid as much as $12 million over 16 years to suppress various allegations of sexual misconduct and extramarital affairs.
The settlement comes as Vince McMahon’s wife and former WWE CEO Linda McMahon prepares for her Senate confirmation hearing to become Secretary of Education in President-elect Donald Trump’s second administration. I was disappointed.
Correction (January 10, 2025, 12:50 PM ET): An earlier version of this article incorrectly listed the last name of one of the former WWE employees who filed a civil lawsuit against Vince McMahon. It was listed. She’s Janelle Grant, not Janelle Hill.
