Vince McMahon’s return to WWEand especially the one who was elected yesterday as the Executive President of the Board of Directors of the company, has not liked almost anyone. Not many fans, not many fighters, not even Stephanie McMahon herself, are happy with McMahon’s return.
And now, a shareholder has gone a step further and is starting a class action lawsuit against Vince McMahon in Delaware, a state where WWE has been registered at the corporate level for many years. Said demand was initially conducted by Scott Fellows, however, the class action has since been joined by other shareholders.
The lawsuit was filed in the Delaware Court of Chancery and there, McMahon is accused of exercising his 81 percent voting control, to expel three members of the Board of Directors, replace them with people loyal to him, and push for changes in the bylaws that ‘they would impose their will on the Board of Directors and WWE’.
At the moment, neither McMahon nor WWE have ruled on this new lawsuit against Vince. The class action lawsuit also adds that:
“McMahon scheduled his return to take control of the upcoming negotiations regarding television broadcast rights, which are expiring soon and which is the lifeblood of the company, and forced his return by taking advantage of a threat to withhold support for any television deal or sale process. that was accessed without your consent or participation.
“But the measure of taking complete personal control over any major corporate decision, by adding your cronies to the Board of Directors, violates Delaware law, especially, Section 141 of the Delaware General Corporation Law; breach of fiduciary duty.”
The plaintiff also calls for the nullity of the most recent changes in the WWE Board of Directorsthat is, the departure of the three members who were fired to be replaced by Vince McMahon, Michelle Wilson and George Barrios.
The goal of the lawsuit is to invalidate bylaw changes that Vince McMahon filed to the SEC on Friday (see below) + attorneys fees. These bylaw changes, essentially, gave Vince tremendous power. These bylaw changes were made BEFORE Vince’s new board elected him executive chairman. pic.twitter.com/1QfXXhacXT
— Moonlight Graham (@ReeceKelleyG) January 11, 2023
“PLEASE UNDERSTAND: Vince McMahon does not own 81 percent of WWE’s shares. Until March 2022, he owned 37.6 percent. But, they are Class B shares, which gives it 10 times (10x) voting power.
“So, there are minority shareholders and Vince is obligated to do what’s best for them. The lawsuit argues that’s not the case, and that it’s falling short. The goal of the lawsuit is to invalidate the statutory changes that Vince McMahon filed with the SEC (Securities and Exchange Commission) last Friday, in addition to having him pay attorneys’ fees.
“These bylaw changes essentially gave Vince tremendous power. These bylaw changes were made BEFORE the new Board of Directors elected Vince as Executive Chairman.”