wrestling / News
Lawsuit Filed Over Vince McMahon’s Return To WWE
Vince McMahon’s return to the WWE Board of Directors is the subject of a lawsuit filed by a WWE shareholder against the Chairman. Bloomberg reports that Scott Fellows filed suit yesterday in Chancery Court of Delaware against McMahon. The suit alleges that by forcing his way back onto the Board, McMahon violated WWE’s Charter and breached his Fiduciary Duty as Controlling Stockholder.
Fellows, who is asking that the lawsuit be classified as a class action one so that others can join, argues that McMahon forced his way back in and then added an amendment that prevents the company from executing deals without his approval. This is the amendment that allows McMahon to approve any media rights or sale deals.
Fellows is asking for the court to declare that McMahon breached his fidiciary duties and invalidate the Stockholder Approval Amendment, as well as asking for damages covering the cost of the lawsuit.
The suit notes:
Following an investigation into allegations of sexual harassment against McMahon, the Board unanimously determined it was not in the best interests of the Company and its stockholders for McMahon to return to WWE. Nonetheless, McMahon executed the Written Consent to remove certain directors who opposed him and add himself and two cronies to the Board. The Stockholder Approval Amendment went further and usurped the power of the Board to manage the affairs of the Company. It even prohibits the Board and officers from advocating for transactions McMahon may oppose even if they believe those transactions are in the best interests of the Company and its stockholders.
As such, McMahon violated his fiduciary duties by executing the Written Consent.
Plaintiff is entitled to a declaration that the Stockholder Approval Amendment is void and invalid. Plaintiff has no adequate remedy at law.
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