Detroit Police And Fire Retirement System Files Lawsuit Against Vince McMahon, Seeking to Block McMahon Regaining Control of Board

– According to a report by Sportico, the Detroit Police and Fire Retirement System has filed a lawsuit against WWE Executive Chairman of the Board Vince McMahon. With the lawsuit that was filed last Thursday (Jan. 12), the group is seeking a declaration to block McMahon from regaining control of the board of directors and expediting a sale of the company.

The complaint was filed in Delaware’s Court of Chancery, and the retirement system wants the lawsuit recognized as a class action on behalf of other WWE stockholders. Sportico is also estimated an enterprise value of $8.6 billion of WWE for a potential sale.

The complaint claims that McMahon breached his fiduciary duties as the controlling stockholder of WWE in an attempt to “impose his personal will on WWE and its “board” by purporting to adopt a package of invalid and inequitable bylaw amendments that would hamstring the Board from making critical business decisions.” The complaint also alleges that McMahon’s return to the company was a “corrupt-and unlawful-dealing.” The WWE Board of Directors previously declined an attempt to allow McMahon to return to the company, noting it “would not be prudent from a shareholder value perspective.”

The filing also alleges that Vince McMahon used his control over the company’s stock as leverage by threatening to “withhold support” for upcoming media rights negotiations and “hold WWE hostage” unless he gets reinstated. McMahon returned to the WWE Board of Directors earlier this month, and he was then later elected as the new Executive Chairman of the Board.

This is the latest lawsuit filed in the wake of McMahon’s return to the company. Last week, Scott Fellows filed a lawsuit against McMahon, arguing that McMahon breached his fiduciary duties to the company.