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Vince McMahon Settles SEC Charges Over $10.5 Million in Undisclosed Payments to WWE, Agrees to Pay $1.7 Million

Jan 10, 2025, 05:31 PM

Vince McMahon, former CEO of World Wrestling Entertainment (WWE), has agreed to pay more than $1.7 million to settle charges brought by the U.S. Securities and Exchange Commission (SEC). The SEC alleged that McMahon failed to disclose to WWE's board and other officials two settlement agreements he signed, totaling $10.5 million, with two women to prevent them from revealing potential claims against him and WWE. One agreement, signed in 2019, required McMahon to pay a former employee $3 million, while the other, signed in 2022, obligated him to pay a former WWE independent contractor $7.5 million. These payments were not disclosed, leading to material misstatements in WWE's 2018 and 2021 financial statements, with net income overstated by approximately 8% and 1.7% respectively. McMahon agreed to pay a $400,000 civil penalty and reimburse WWE $1.33 million. McMahon resigned from WWE's parent company, TKO Group Holdings, in January 2024 following a lawsuit by a former employee accusing him of sexual misconduct, which he denies. McMahon described the issue as minor accounting errors related to personal payments made during his tenure as CEO.