WWE Vince McMahon's Misconduct Case

In mid-2022, WWE faced a scandal over accusations of sexual misconduct and undisclosed payments vs. CEO V. McMahon, leading to his resignation. 
On it, $WWE fell 5.5%, losing over $200M of shareholder value. 
Investors may have reasons to suspect WWE, its BoD, and V. McMahon of misconduct and internal control setbacks that led to their losses.
On June 17, 2022, amidst an investigation by WWE's BoD into reported "hush money" paid to a former employee by Vince McMahon following an affair, McMahon stepped down as chairman and CEO of WWE. He was replaced by his daughter, Stephanie McMahon, as the interim chairwoman of WWE.

On this news, $WWE fell 5.5%+ and lost $200 million of its market capitalization over two trading days, seriously damaging shareholders.
On July 22, 2022, CEO Vince McMahon announced his retirement from WWE. 
On July 25, 2022, WWE filed the SEC report which announced that “the Company has made a preliminary determination that certain payments that Vince McMahon (CEO) agreed to make during the period from 2006 through 2022, and that were not recorded in the WWE consolidated financial statements, should have been recorded as expenses in the quarters in which those agreements were made”. 
The Company has identified Unrecorded Expenses totaling approximately $14.6 million.” 
On this news, $WWE jumped 8%+, or $ 174 million in market capitalization, which may be deemed as lost profits to shareholders in the past.

The Wall Street Journal reported that McMahon agreed to pay $12 million over the past 16 years to suppress allegations of sexual misconduct and infidelity.

Considering all the facts, investors may have reasons to suspect WWE & its BoD & V. McMahon of misconduct and internal control setbacks which consequently led to shareholder losses.

Case Status

Attorney Investigation

Alleged Offence

Financial Misrepresentation,

Failure to Disclose,

Malpractice,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06/18/2022

WWE Vince McMahon's Misconduct Case

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