A shareholder has filed a lawsuit against Vince McMahon, accusing the executive chairman of WWE’s board of directors of abusing his position as majority shareholder.
New twist around the return of Vince McMahon: A complaint has been filed by a shareholder as part of a class action.
A WWE shareholder, Scott A. Fellows, has indeed filed a complaint on his behalf and that of several other shareholders in a class action in the Delaware Court of Chancery against Vince McMahon, accused of having dismissed members of the board of directors to illegally install himself as chairman of the latter.
Vince McMahon is thus accused of abusing his position as majority shareholder and using his 81% share of votes on the Board of Directors to fire three members of this Board in order to impose his presence and that of two other close collaboratorsMichelle Wilson et George Barrios.
According to the class action proposal, it is recalled that Vince McMahon has scheduled his comeback to the board of directors to take control of upcoming negotiations over WWE’s TV rights which will expire in 2024. Negotiations described as a “nerve of war” for the company, and forced his return by threatening to not support any of the agreements made if he does not recover his place as executive chairman.
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The move to “take full and personal control of any major corporate decision” by “bringing his accomplices onto the board” violates Delaware law, the complaint says.
Vince McMahon announced his intention to return to the WWE board of directors last Friday with the intention of taking the place of executive chairman of the board of the Stamford company, which he succeeded in doing this Tuesday after the resignation of Stephanie McMahon as co-chair.