A WWE shareholder has filed a class action complaint against Vince McMahon and is seeking declaratory relief.
Scott Fellows, who holds Class A common stock in the company, filed a suit on Tuesday claiming the reinstalled McMahon has made serial abuses of power as CEO and making “invalid and inequitable bylaw requirements that would hamstring the board from making critical business decisions.”
The suit was filed in Delaware’s Chancery Court as Fellows seeks to have the bylaw changes invalidated because of their restrictive nature for the board.
The suit accuses McMahon of abusing his power as CEO by sexually harassing women within and outside WWE. The suit lists all the allegations outlined by the Wall Street Journal in 2022 as well as Rita Chatterton’s accusation that she was raped by McMahon inside of a limousine in July 1986 which was disclosed by Chatterton in 1992.
The suit could include “thousands of WWE stockholders scattered throughout the United States.”
The amendment to the bylaws that were introduced last week are listed in the suit with the plaintiff that the changes were “adopted for the inequitable purpose of holding the board and management hostage with respect to virtually every major strategic decision.”
The following is being sought in the class action suit:
A. Declaring that this Action is properly maintainable as a class action;
B. Declaring that McMahon breached his fiduciary duties;
C. Declaring that the Stockholder Approval Amendment violates the DGCL and the Charter;
D. Invalidating the Stockholder Approval Amendment;
E. Awarding Plaintiff the costs, expenses, and disbursements of this action, including all reasonable attorneys’, accountants’ and experts’ fees; and
F. Awarding such other relief as this Court deems just and equitable.
The full suit can be read on Bloomberg Law.
