The two lawsuits filed against WWE by shareholders over Vince McMahon’s return to the Board of Directors that have already been reported on dealt with the way he returned. A third is covered in a new Bloomberg story, and it focused on the behavior that led to McMahon’s brief retirement.
While the case filed by Carole Casale and Chrystal Lavalle is not available to the public at this time. Bloomberg’s report states that it brings “broader claims directly involving the sexual harassment accusations” and that the plaintiffs are “suing over McMahon’s alleged history of paying to cover up sexual harassment accusations.”
Unlike the first two suits, which allege that McMahon forced his way back onto the Board by threatening to use his ownership of 81% of voting stock to veto any potential sale or media rights deals, this new case is unlikely to be affected by WWE’s Jan. 16 filing with the Securities & Exchange Commission. That repealed the corporate bylaw changes from a Jan. 5 SEC filing which Vince used to execute his comeback plan.
Plaintiffs in those cases — the pension fund of Detroit’s police and firefighters, and investor Scott Fellows — are now arguing that their suits forced “McMahon to curtail his ambitions.” As such, they now seek a “mootness fee”. However, if their action remains linked to the new suit targeting McMahon’s alleged misconduct and associated hush money payments in one class action, that will interfere with their fee request.
McMahon is said to be seeking to resolve any outstanding legal issues so that they don’t interfere with efforts to sell WWE. Last week, it was reported he agreed to “multimillion-dollar legal settlement” with Rita Chatterton, the former referee who alleges Vince raped her in 1986.