Vince McMahon, the head of World Wrestling Entertainment, was the subject of a federal grand jury subpoena and a search warrant last month, which was revealed by the organization on Wednesday.
The actions signify a further development in the ongoing inquiry concerning claims that McMahon paid women millions of dollars over time following accusations of sexual misconduct.
McMahon “went on medical leave after having major spinal surgery,” WWE also disclosed on Wednesday.
According to WWE’s quarterly report of the Securities and Exchange Commission, McMahon would “remain on medical leave till further notice but will remain Executive Chairman” after his leave began on July 21.
When contacted on Wednesday for comment, the business stated that it thought the search warrant and subpoena were “a continuation of the investigation that commenced last summer.” WWE has been cooperative the entire time, and it recognizes and honors the government’s requirement for a thorough procedure.
In an independent statement, McMahon told CNBC, “I have consistently rejected any deliberate misconduct and will do so going forward. I have no doubt that the government’s inquiry will be concluded without any misconduct being discovered.
WWE and competitor UFC decided to combine in April to create a new publicly traded business that would be governed by Endeavor Group.
WWE announced on Wednesday that both Endeavor and the company anticipate the purchase closing in the second part of this year.
One year had passed since it was first reported that the SEC and federal prosecutors were looking into WWE and McMahon for payments made to women. On July 17, the search warrant and subpoena were issued.
We have received voluntary and obligatory legal demands for records, including those federal law enforcement and regulatory agencies, relating the inquiry and associated subject areas, WWE stated in an SEC statement on Wednesday.
Linda McMahon, the wife of WWE CEO McMahon, was the administrator of the U.S. Small Business Administration during her tenure in former President Donald Trump’s cabinet.
Just one day after Trump, a personal friend of McMahon’s, was indicted on criminal counts connected to his attempts to overturn his loss in the 2020 presidential election by a federal grand jury in Washington, D.C., McMahon’s federal search warrant and grand jury subpoena were made public.
WWE stated on Wednesday that “the Company incurred $5.3 million and $7.1 million, accordingly, of expenses related to costs incurred” in conjunction with a separate investigation by a special committee that the company’s board had established. The statements apply to the three and six months ended June 30.
According to WWE, McMahon has promised to pay back “all reasonable costs incurred in connection” with the special committee’s work.
The petition stated that Mr. McMahon had reimbursed the company for fees incurred and paid by the company to date, totaling about $17.4 million.
Beyond that sum, it’s unclear how much McMahon will be required to reimburse WWE.
“The Special Committee investigation was concluded in the fourth quarter of 2022, as previously reported. Nonetheless, the corporation stated that relevant government investigations are still ongoing.