World Wrestling Entertainment co-founder and former CEO Vince McMahon on Friday over allegations that he failed to disclose multimillion-dollar settlements he reached with two women while leading WWE. has agreed to a settlement with federal securities regulators.
Mr. McMahon, one of the most recognizable figures in professional wrestling, agreed to pay a $400,000 fine to the Securities and Exchange Commission and repay $1.3 million to WWE.
Mr. McMahon, 79, agreed to the settlement without admitting or denying the charges in an order published by regulators.
The SEC said that although WWE is listed as a party to confidential settlements with the women, Mr. McMahon did not disclose these agreements to WWE's board of directors, attorneys, and accountants. His inaction meant WWE was unable to assess the risk of the settlement to the company and was unable to adequately explain the settlement.
In 2019, McMahon agreed to pay a woman who worked for WWE $7.5 million after she accused him of assaulting her after she refused to have sex with him. Three years later, he reached a $3 million settlement to keep his “personal relationship” with a female employee a secret. According to the order, McMahon also directed the woman to quit her job with WWE.
McMahon said in a statement that the settlement resolves the issue. He said the dispute with the SEC was just a “minor accounting error regarding some individual payments.” He added, “I'm excited to now be able to forget everything.”
WWE's Board of Directors became aware of the settlement in April 2022 and began an investigation. Mr. McMahon resigned from the company in June of the same year.
The commission's investigation found that from 2006 to 2022, McMahon spent $14.6 million in payments to women who accused him of sexual misconduct. The investigation also revealed that Mr. McMahon had made additional payments totaling $5 million to two other women.
Mr. McMahon made a comeback of sorts by backing WWE's plan to merge with Ultimate Fighting Competition's parent company and another company in September 2023. After the merger, the two companies changed their brand name to TKO Group, with Mr. McMahon serving as executive chairman.
However, McMahon resigned from his position at TKO in January 2024 after a former WWE employee sued him in federal court, accusing him of sexual abuse and sex trafficking.
The SEC said that while McMahon did not disclose his settlements with the two women, he was a controlling shareholder with approximately 80% of WWE stock. In September, he reported that he owned 8 million shares of TKO stock.
Linda McMahon, the wife of Mr. McMahon, who was a top WWE executive from 1980 to 2009, has been nominated by President-elect Donald J. Trump to be the next Secretary of Education. McMahon, who is currently a director of Trump Media & Technology Group, was not mentioned in the SEC order. The couple is living separately.
