The allegations facing Vince McMahon are only reaching farther into WWE as the Board of Directors is now under investigation by a law firm.
On the heels of news that Vince McMahon is being investigated by his own board of directors for allegedly paying off a paralegal to keep quiet regarding an affair he was involved in, WWE’s board of directors and senior management are being investigated as well. Scott+Scott Attorneys at Law LLP is investigating whether members of WWE’s board of directors or senior management failed to manage WWE in an acceptable manner, and as such, were in breach of their fiduciary duties to WWE.
Essentially, to be in breach of one’s fiduciary duties is to fail to act in the best interests of another person (in this case shareholders) when it is the responsibility of that person to do so. The reason for the investigation is to determine whether WWE and its shareholders have suffered damages as a result of said mismanagement and are owed any monies or damages as a result.
On June 15, 2022, the Wall Street Journal reported that the WWE board was investigating an alleged $3 million settlement that CEO Vince McMahon agreed to pay to keep an affair quiet. Now, the law firm is reaching out to shareholders and letting them know that if they feel they have legal claims against WWE’s directors and officers, they should come forward to discuss the investigation, including whether these same shareholders have legal rights.
Essentially, this investigation will try to uncover if all the incidences that Vince and others are being accused of might have interfered with the company’s ability to make money for its shareholders. If Vince and others named in said suit were not effectively doing their job, the shareholders may have a right to sue. To put it simply, if whatever is uncovered in these investigations shows that McMahon and others were not working in the best interests of the shareholders, things could get ugly and quickly.