The Securities and Exchange Commission (SEC) has settled charges against former WWE CEO Vince McMahon. They said he did not tell the WWE board and others about two agreements. These agreements were worth $10.5 million. They were made with two women so they would not reveal possible claims against him and WWE.
Vince McMahon stopped being WWE’s CEO in 2022. He denied doing anything wrong. After leaving WWE, he was part of TKO Group Holdings.
The SEC explained the agreements more. One required McMahon to pay a former worker $3 million. This was so she would not talk about her relationship with McMahon and possible claims against WWE. The other was with a former WWE independent contractor. McMahon had to pay her $7.5 million, so she would not discuss her claims against McMahon and WWE.
The SEC said that because McMahon did not talk about these agreements, it caused problems in WWE’s accounting and financial reports in 2018 and 2021. WWE had to correct its financial statements in August 2022.
Vince McMahon agreed to pay a $400,000 fine, and reimburse WWE about $1.3 million. He did not admit any wrongdoing.
There is still a federal lawsuit against McMahon by a former employee. She accused him of serious misconduct. McMahon has denied these claims too.
Vocabulary List:
- Charges /tʃɑːrdʒɪz/ (noun): Formal accusations of wrongdoing or illegal activity.
- Agreements /əˈɡriː.mənts/ (noun): Mutual arrangements or contracts made between parties.
- Claims /kleɪmz/ (noun): Statements that assert the truth of something often involving demands for compensation.
- Misconduct /ˌmɪsˈkɒndʌkt/ (noun): Unacceptable or improper behavior especially by a person in authority.
- Reimburse /ˌriː.ɪmˈbɜːrs/ (verb): To pay back money to someone for expenses incurred.
- Financial /faɪˈnænʃəl/ (adjective): Relating to money management or economics.
