In an SEC report filed on September 29th, TKO Group Holdings Inc., aka the combined WWE-UFC corporate entity, announced that the civil cases that disgruntled WWE shareholders had brought against Vince McMahon for alleged breach of fiduciary duty, will be effectively closed from the Court’s jurisdiction following a $2MM USD payment to be made by McMahon to the lawyers of the plaintiffs.
The payment of the $2MM will be made within three days of the SEC filing, and at that point, the matter will be considered closed.
The case involves two lawsuits that had been brought against McMahon earlier this year, alleging that he had violated his fiduciary duty to minority stockholders of WWE resulting from the need for the company to restate its financial statements to properly-account for payments made to cover up McMahon’s alleged sexual improprieties. The cases were effectively rendered moot when McMahon reimbursed the company $17.4MM for the costs incurred, including the costs of the special Board investigation into those activities.
McMahon’s alleged activities are still under investigation by securities regulators and law enforcement.
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