Last month, federal law enforcement agents conducted a search at the residence of Vince McMahon, the CEO of World Wrestling Entertainment (WWE). On Wednesday, the company revealed that he was also served with a federal grand jury subpoena during the operation.
The recent actions indicate a progression in the ongoing inquiry into claims that McMahon paid substantial amounts to women over the years, following allegations of sexual misconduct. Furthermore, WWE disclosed that McMahon took medical leave due to a significant spinal surgery.
According to the company's quarterly report to the Securities and Exchange Commission, McMahon commenced his medical leave on July 21. During this period, he will continue to hold the position of Executive Chairman at WWE. However, there is no specified date for his return, and he will remain on medical leave until further notice.
Advertisement
In April, WWE reached an agreement to merge with its rival UFC, creating a new publicly traded company that will be under the control of Endeavor Group.
Both WWE and Endeavor anticipate the completion of the merger in the latter half of this year, as stated on Wednesday.
A year after initial reports of federal prosecutors and the SEC investigating WWE and McMahon regarding his payments to women, a search warrant and subpoena were issued on July 17th.
In a filing with the SEC on Wednesday, WWE stated that it has been presented with both voluntary and compulsory requests for documents. These requests come from various federal law enforcement and regulatory agencies and pertain to the ongoing investigation and related matters.
Advertisement
McMahon's federal search warrant and grand jury subpoena came to light merely a day after Trump, a close associate of McMahon's for many years, faced indictment by a federal grand jury in Washington, D.C. The charges against Trump were grave felonies linked to his attempts to overturn the 2020 presidential election results in his favor.
On Wednesday, WWE announced that they had incurred expenses of $5.3 million and $7.1 million during the three and six months ending on June 30, respectively. These expenses were associated with costs related to a separate investigation conducted by a special committee formed by the company's board.
The company emphasized that McMahon has committed to bearing all reasonable expenses related to the special committee's efforts and will duly reimburse WWE accordingly.
