It was revealed in the latest WWE 10-Q regulatory filing and during WWE’s earnings call earlier this week that Vince McMahon was served a subpoena to testify before a federal grand jury and a search warrant was executed on him. The location of the search warrant was not detailed but it relates to paying millions of dollars to women after being accused of sexual misconduct.
Nothing more was detailed in the earnings call except the fact that McMahon complied with the subpoena request. It would appear that McMahon will, at some point, testify before a federal grand jury. During that hearing, the grand jury will determine if there is sufficient evidence to charge McMahon with any crimes. Based on the information, it would appear that since the WWE is a publicly traded company, prosecutors would investigate whether or not McMahon used WWE money and/or his influence as the head of the company at that time to divert money for his personal interests.
McMahon returned to power at WWE once the acquisition of the company took place this past spring with Endeavor.
Payout Perspective:
One of the things with being a publicly traded company is that it has to report all of the legal proceedings that may affect the company. If the WWE was still a private company, we may never have heard of the subpoena. McMahon will now have to testify before a grand jury and it may determine if he is charged with any crimes.
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