The Securities and Exchange Commission (SEC) has announced that it has reached a settlement with former WWE CEO Vince McMahon concerning charges he failed to disclose two settlement agreements totaling $10.5 million to WWE’s board and other key parties. These agreements involved compensating two women to prevent them from revealing potential claims against him and the company.
McMahon resigned from his position in January 2024 following a federal lawsuit initiated by a former employee alleging serious sexual misconduct. Despite these charges, he has continually denied any wrongdoing.
The SEC revealed that the first agreement was signed in 2019, requiring McMahon to pay a former employee $3 million in exchange for her silence about their relationship. The second agreement, dated 2022, mandated a payment of $7.5 million to a former independent contractor in return for her agreement not to disclose allegations of misconduct.
The SEC emphasized that McMahon’s failure to disclose these settlements led to significant misstatements in WWE’s financial records for the years 2018 and 2021. Consequently, he has agreed to a $400,000 civil penalty and will reimburse WWE about $1.3 million.
In response, McMahon described the extensive investigation as misguided, claiming it merely revolved around minor accounting errors concerning personal payments made during his tenure. Meanwhile, his accuser’s attorney insists that the SEC’s findings validate their claims against McMahon.
McMahon, a longstanding figure in the wrestling industry, expressed eagerness to move on from these issues.
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Associated Press writer Larry Neumeister contributed to this report.
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Vocabulary List:
- Settlement /ˈsetl.mənt/ (noun): An agreement reached between parties to resolve a dispute or claim.
- Misstatements /ˌmɪsˈsteɪt.mənt/ (noun): Incorrect or false statements made often in financial records.
- Compensating /ˈkɒmpənˌseɪtɪŋ/ (verb): Providing something usually financial to make up for a loss or injury.
- Accuser /əˈkjuː.zər/ (noun): A person who claims that another person has done something illegal or wrong.
- Disclosure /dɪsˈkloʊ.ʒər/ (noun): The action of making new or secret information known.
- Allegations /ˌæl.əˈɡeɪ.ʃən/ (noun): Claims or assertions that someone has done something illegal or wrong typically made without proof.
