A federal appeals court recently ruled that a lawyer for wrestling mogul Vince McMahon acted improperly by withholding documents related to a grand jury investigation. This investigation centers on how McMahon, the former head of WWE, managed significant settlement agreements with two former female employees who have accused him of sexual abuse.
The 2nd U.S. Court of Appeals in New York upheld a prior ruling that determined the documents in question did not fall under attorney-client privilege, especially given the context of potential criminal activity involved. The court pointed out that McMahon and his attorney allegedly created misleading records to hide these agreements from WWE’s internal oversight and auditors, despite McMahon’s assertion that the settlements were paid with personal funds.
While many documents were provided to the grand jury, McMahon’s legal team claimed that 208 documents were still protected and not to be disclosed. The identities of the parties involved were not revealed in the court opinion, but sources confirm that McMahon was the unnamed former CEO referenced in the ruling.
Details about the grand jury’s status remain unclear. The Manhattan U.S. Attorney’s Office has not provided any comments on the ongoing investigation, which has yet to be made public.
McMahon has consistently denied any wrongdoing. In a prior statement from January, he claimed the extensive inquiries he faced from various government entities over his actions had concluded, suggesting the matters were merely minor accounting errors concerning personal payments he made during his tenure as WWE’s CEO.
The appellate court’s ruling indicates that the current status of the grand jury investigation does not involve any indictments at this time, although it does reveal some new information about the probe. One of the former employees involved in the settlements has declined to comment when approached.
In January 2024, McMahon resigned from TKO Group Holdings, WWE’s parent company, following accusations from a former employee, Janel Grant, who filed a federal lawsuit citing serious sexual misconduct against him and another executive. McMahon has repeatedly denied these allegations.
Grant has stated that she felt coerced into leaving her job and signing a nondisclosure agreement worth $3 million, which she now seeks to have nullified. The lawsuit also accuses McMahon of breaching this agreement by making only partial payments.
The recent appellate court decision also highlighted that McMahon made a $7.5 million settlement with a different former employee, in addition to the agreement with Grant.
Prosecutors have called for additional records regarding the settlements between McMahon and the former employees, which were negotiated with the help of McMahon’s attorney. When some documents were withheld, prosecutors moved to compel their release, leading to the recent court decision emphasizing the seriousness of the matter.
The implications of this ruling could be significant for McMahon and the WWE, as details of the ongoing investigation continue to unfold.
