WWE Inc. leader Vince McMahon—who returned to the corporate in early January after resigning amid a wave of sexual harassment allegations—is dealing with investor litigation over claims that he driven apart the board to illegally set up himself as chairman.
A shareholder sued McMahon in Delaware’s Chancery Courtroom, accusing him of wielding his 81% vote casting keep an eye on to oust 3 board participants, change them with loyalists, and push via bylaw adjustments that will “impose his will at the board and WWE.”
A spokesperson for McMahon and WWE didn’t right away reply to a request for remark Wednesday.
The dispute Tuesday comes about six months after McMahon stepped down as chairman and CEO within the face of allegations that he had paid $12 million over greater than 15 years to stay a lid on sexual harassment accusations through girls each inside of and out of doors the corporate.
McMahon’s fresh strikes have reinserted him as the top of a WWE royal circle of relatives he spent many years main, each at the back of the scenes and on display.
In line with the proposed elegance motion, McMahon timed his go back to grab keep an eye on of upcoming negotiations over the corporate’s expiring media rights, the “lifeblood” of the industry, and compelled his long ago through leveraging a risk to withhold give a boost to for any deal reached with out his participation.
However the transfer to “take whole private keep an eye on over any primary company resolution” through “including his cronies to the board” violates Delaware legislation, the swimsuit says.