The Securities and Exchange Commission settled charges against former WWE CEO Vince McMahon for not telling the company’s board about two $10.5 million settlement agreements with two women. McMahon resigned in January 2024 after facing a lawsuit accusing him of sexual misconduct. He denied the allegations. McMahon also stepped down as WWE’s CEO in 2022 during an investigation into similar claims.
The SEC said McMahon didn’t disclose the agreements, causing financial misstatements in WWE’s records. The company restated its financial statements in August 2022. McMahon agreed to pay a $400,000 fine and reimburse WWE $1.3 million. McMahon said the investigation was about minor accounting errors and he was glad it was over.
A lawyer for Janel Grant, who accused McMahon of sexual misconduct, said the charges show McMahon broke the law. McMahon denied the allegations. McMahon led WWE for years, expanding it to huge stadiums and global audiences. Netflix now airs WWE’s popular “Raw” program. This report includes information from Associated Press writer Larry Neumeister.
Vocabulary List:
- Allegations /ˌæl.ɪˈɡeɪ.ʃənz/ (noun): Claims or assertions made without proof.
- Settlement /ˈsɛt.əl.mənt/ (noun): An official agreement intended to resolve a dispute or conflict.
- Misstatements /ˌmɪsˈsteɪt.mənts/ (noun): Incorrect or misleading statements especially in financial records.
- Reimburse /ˌriː.ɪmˈbɜːrs/ (verb): To pay back or compensate someone for money spent or lost.
- Conduct /ˈkɒn.dʌkt/ (noun): The manner in which a person behaves especially in a professional context.
- Investigation /ɪnˌvɛs.tɪˈɡeɪ.ʃən/ (noun): The act of examining a situation or a crime to discover the truth.
