WWE reported its second-quarter earnings results on August 2 and the filing included some legal information regarding Vince McMahon.
McMahon was accused of paying out hush money after sexually harassing employees in June 2022. The new filing states that WWE is still making payments on the investigation into those claims and on legal fees for lawsuits related to the case.
In addition, the full filing shares that federal law enforcement agents executed a grand jury subpoena and search warrant on McMahon on July 17. No charges have been filed on these respective investigations.
Item 1. Legal Proceedings
As previously disclosed on June 17, 2022, a Special Committee of the Board of Directors was formed on June 15, 2022 to investigate allegations of misconduct by Vince McMahon. As previously disclosed, the Special Committee investigation was completed during the fourth quarter of 2022. However, related government investigations remain ongoing.
On July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations.
The Company has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters.
Fully consistent with prior expectations, the Company and Endeavor expect their transaction to be closed in the second half of 2023.
Additional information with respect to this item may be found in Note 18, Commitments and Contingencies, to the Consolidated Financial Statements.
McMahon recently underwent major spinal surgery on July 21 and is expected to be on medical leave for the foreseeable future.
According to the WWE filing, the company paid “$5.3 million and $7.1 million, respectively, of expenses related to costs incurred in connection with and/or arising from the investigation conducted by the Special Committee of members of the Company’s Board of Directors, related revisions to the Company’s financial statements and other related matters.”
McMahon agreed to reimburse the company for “all reasonable costs” incurred in connection with the Special Committee’s investigation and related revisions to the company’s financial statements. To date, McMahon has paid back an estimated $17.4 million to reimburse for costs incurred by WWE.
