More on Sex Trafficking Lawsuit Against Vince McMahon & His Resignation – Lawsuit Update, More Internal Reactions, SEC Filing, Media Coverage

Vince McMahon Sex Trafficking Lawsuit Update & More Internal Reactions Over McMahon’s Resignation

As noted before, former WWE employee Janel Grant filed a lawsuit this past Thursday against TKO Group Executive Chairman Vince McMahon accusing McMahon of committing sex trafficking and sexual abuse towards her during her time in the company. McMahon announced this past Friday evening that he officially resigned from TKO Group and WWE.

PWInsider’s Mike Johnson reported the electric summons for McMahon, John Laurinaitis, and WWE were issued on January 26th by the United States District Court, District of Connecticut (New Haven) based on recent court records. Johnson reported that all three defendants will have 21 days to officially respond once it is confirmed they were served. Johnson also reported that as of Monday morning, none of the defendants had been recorded by the court of having actually been served their papers.

In regards to the internal reaction over McMahon’s resignation from TKO and WWE, one source spoken to stated that once the true money was in real danger of being lost in reference to advertisers and sponsors, “it was just a matter of time” before McMahon would have resigned. This same source reportedly also stated that the timetable for McMahon’s resignation happened faster than anyone truly had expected.

In regards to the backstage reaction within WWE, Johnson reported that the initial response was one of a mix of general relief and happiness over the feeling that McMahon got what was coming to him based on the allegations in the lawsuit. Others spoken to reportedly stated that they were glad that McMahon was not distanced in an official capacity from the company. One source spoken reportedly described McMahon as “a black cloud hanging over everything even though he wasn’t involved in anything anymore.”

Johnson reported that there were some within WWE on Friday evening who were hoping that McMahon’s exit would open the door for Stephanie McMahon to return to the company. Others spoken to reportedly stated that this is not the same company internally that existed before Endeavor took over ownership and were not sure how she might potentially fit back in nor if she is even interested in returning at this point.

In regards to the current belief within WWE of Endeavor might sweep out anyone close to McMahon and whatever remaining support team he still had in place, Johnson reported that a lot of people within the company are currently waiting to see how this shakes out in the days ahead. One source spoken to stated that “if anyone believes for a second” that Endeavor owner Ari Emanuel wanted to discover the type of allegations that were brought forward not just about a company he just purchased but also one that has been employing his daughter for several tears, then they “don’t know Emanuel” and don’t understand how “ferociously he will eradicate” anything that needs to be taken care of to protect his businesses. This same source reportedly also stated that if Emanuel was willing to walk away from Saudi Arabian investments years ago without “blinking an eye,” then he will have no problem “removing anything and anyone still remaining” that could potentially hurt or impact WWE’s business going forward.

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TKO Notifies SEC of Vince McMahon’s Resignation

TKO Group filed a notice to the Securities and Exchange Commission (SEC) on Monday confirming that Vince McMahon has officially resigned from TKO and all of its subsidiaries, which includes WWE.

Official SEC filing:

“On January 26, 2024, Vincent K. McMahon notified the board of directors (the “Board”) of TKO Group Holdings, Inc. (“TKO”) of his resignation from his positions as Executive Chair and a member of the Board, and any other positions, employment or otherwise, he has at TKO and its subsidiaries, in each case, with immediate effect as of January 26, 2024.”

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CNN, Newsweek, & More Mainstream Media Coverage of Vince McMahon Sex Trafficking Lawsuit & Resignation

Over the past several days, several notable mainstream media outlets have covered the Vince McMahon sex trafficking lawsuit, McMahon’s resignation, and the fallout affecting both TKO Group and WWE.

In a recent article, CNN questioned WWE’s decision to retain McMahon in any capacity after their sale to Endeavor. In the article, CNN stated:

In TKO’s most recent quarterly regulatory filing with the SEC, filed in September, the company noted that McMahon’s position on the board “could have adverse financial and operational impacts on our business.”

“Mr. McMahon’s membership on our board could expose us to negative publicity and/or have other adverse financial and operational impacts on our business,” the company noted in the filing. “His membership also may result in additional scrutiny.”

Although companies frequently detail potential liabilities to business, it’s extraordinary to include the very presence of the company’s leader as a risk.

CNN also stated that TKO did not respond to their questions about why it allowed McMahon to return to the company. It was reported that in an email sent to TKO staff and in a statement to the media, TKO had only addressed McMahon’s job status with the company but did not discuss the specifics of the current allegations against him.

In separate article from Newsweek, the news outlet brought to public attention the current calls for a boycott against WWE on social media. Newsweek stated:

Those details triggered an uproar among wrestling fans and the public, with many taking to social media to express their outrage and call for a boycott of WWE. Users have used the hashtag #BoycottWWE on X to condemn the alleged actions of McMahon and demanding a response from the company.
Newsweek’s article notes that some fans are calling upon Netflix to reconsider their recently announced new deal that will see WWE Raw move to the streaming service in January 2025

Newsweek also stated that some fans have called upon Netflix to reconsider their recently announced deal for WWE’s RAW television series.

Other notable news outlets, such as Deadline, also focused on the comments made by WWE CCO Paul “Triple H” Levesque during this past weekend’s Royal Rumble 2024 post-show media scrum. When asked questions related to the current allegations against McMahon, Levesque responded back stating instead that this past week was a “great week” for WWE and wanting to focus on the “positives and not the negatives” for the company. Levesque was also criticized for publicly saying that he did not read the lawsuit that was filed against McMahon, who is also his father-in-law.