World Wrestling Entertainment Inc. Chairman Vince McMahon appears within the ring through the WWE Monday Night Raw show on the Thomas & Mack Center August 24, 2009 in Las Vegas, Nevada.
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Federal law enforcement agents executed a search warrant on World Wrestling Entertainment boss Vince McMahon last month and served him with a federal grand jury subpoena, the corporate disclosed Wednesday.
The actions represent an escalation of an ongoing investigation into allegations that McMahon paid hundreds of thousands of dollars over time to women after being accused of sexual misconduct.
WWE also revealed Wednesday that McMahon “went on medical leave after undergoing major spinal surgery.”
McMahon’s leave began July 21, and he’ll “remain on medical leave until further notice but will remain Executive Chairman” of WWE, the corporate said in its quarterly report to the Securities and Exchange Commission.
The corporate noted that no charges have been filed against McMahon. CNBC has reached out to WWE with questions on the warrant and subpoena.
In April, WWE agreed to merge with rival UFC to form a latest publicly traded company controlled by Endeavor Group.
WWE and Endeavor each expect the deal to shut within the second half of this 12 months, WWE said Wednesday.
The search warrant and subpoena on July 17 got here a 12 months after news first broke that federal prosecutors and the SEC were investigating WWE and McMahon over his payments to women.
Vince McMahon (R) and Donald Trump attend a press conference concerning the WWE on the Austin Straubel International Airport on June 22, 2009 in Green Bay, Wisconsin.
Mark A. Wallenfang | Getty Images Entertainment | Getty Images
WWE noted within the SEC filing Wednesday that it “has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, regarding the investigation and related issues.”
McMahon’s wife Linda, who previously was CEO of WWE, served within the Trump Cabinet as administrator of the U.S. Small Business Administration.
McMahon’s federal search warrant and grand jury subpoena were disclosed only a day after former President Donald Trump, a longtime friend of McMahon’s, was himself indicted by a federal grand jury in Washington, D.C., on serious felony charges related to his efforts to reverse his loss within the 2020 presidential election.
WWE on Wednesday said that through the three and and 6 months ended June 30, “the Company incurred $5.3 million and $7.1 million, respectively, of expenses related to costs incurred” in reference to a separate investigation of McMahon’s alleged misconduct conducted by a special committee arrange by the corporate’s board.
McMahon has agreed to reimburse WWE for “all reasonable costs incurred in connection” with the special committee’s work, the corporate said.
“To this point, Mr. McMahon has paid roughly $17.4 million to reimburse the Company for costs which were incurred and paid by the Company,” the filing said.
It shouldn’t be clear how far more McMahon may have to reimburse WWE beyond that quantity.
“As previously disclosed, the Special Committee investigation was accomplished through the fourth quarter of 2022. Nevertheless, related government investigations remain ongoing,” the corporate said.
