Former WWE Chairman Fined and Reimburses WWE
Summary
– Vince McMahon agrees to a $400,000 civil penalty and reimburses WWE $1.33 million
– SEC investigation found McMahon failed to disclose settlement agreements, leading to financial misstatements
– McMahon denies wrongdoing and describes the case as minor accounting errors
Vince McMahon has settled with the SEC after being found in violation of the Securities Exchange Act. McMahon will pay a $400,000 civil penalty and reimburse WWE $1.33 million. The SEC’s findings relate to his failure to disclose two settlement agreements totaling $10.5 million, which caused financial misstatements in WWE’s 2018 and 2021 statements.
The SEC stated that McMahon did not inform WWE’s Board, legal team, or auditors about the agreements, circumventing internal accounting controls and causing WWE to overstate its net income in 2018 by 8% and in 2021 by 1.7%. The agreements, one in 2019 and another in 2022 involved undisclosed settlements with two women, one believed to be Janel Grant, who has an ongoing lawsuit against McMahon and WWE.
In his public statement, McMahon downplayed the SEC’s findings, calling them minor accounting errors and expressing relief at concluding the nearly three-year investigation.
“The case is closed… There was never anything more to this than minor accounting errors with regard to some personal payments that I made several years ago while I was CEO of WWE,” McMahon said.
Since stepping down as WWE executive chairman in January 2024, McMahon has reportedly built a new entertainment venture with former WWE executives. According to TKO leadership, he has had no involvement with WWE operations since his departure.
