CNN
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Vince McMahon has stepped down as executive chairman of WWE's parent company, TKO, following disturbing allegations of sexual assault, human trafficking, and physical abuse.
The allegations were brought to light in a lawsuit filed by Janelle Grant, a former WWE employee who worked at the headquarters of the wrestling giant founded by McMahon.
Mr McMahon has denied the charges and said he is prepared to defend himself in court. But in a statement Friday, McMahon said he had resigned.
“I am stepping down with respect to the WWE Universe, the extraordinary TKO business, its board members and shareholders, partners and constituents, and all of the employees and Superstars who have made WWE the world leader it is today. “The executive chairman position and the TKO Board of Directors have decided to take over, effective immediately,” McMahon said in a statement.
Reports that McMahon paid settlements to multiple women while he was CEO and chairman of WWE have been circulating since at least 2022, but the lawsuit filed by Grant on Thursday covers the scope of McMahon's misconduct. It sheds new light.
In the lawsuit, Grant claimed that McMahon offered her a job in WWE and a subsequent promotion in exchange for sex. Grant's lawsuit also alleges that McMahon trafficked her to other men inside and outside of her company. Among them is John Laurinaitus, who works in the company's talent relations department and is also named as a defendant in the lawsuit.
The complaint alleges that McMahon subjected Grant to “extreme cruelty and degrading” behavior during his time with WWE.
TKO remains silent about the allegations
TKO Group Holdings has not commented on the allegations. In an email to staff obtained by CNN, WWE Chairman Nick Khan simply stated that McMahon had tendered his resignation from his position as executive chairman and board member.
“He will no longer have a role with TKO Group Holdings or WWE,” Khan wrote in an email.
On Thursday, after Grant's allegations were made public in the lawsuit, the company said, “McMahon does not control TKO or oversee the day-to-day operations of WWE.”
McMahon's departure marks a new turning point for the professional wrestling entertainment company he founded more than 40 years ago.
He initially stepped down as CEO and chairman of WWE in July 2022 following allegations of sexual misconduct. At the time, WWE announced that a special committee would investigate McMahon.
However, his retirement did not last long. The investigation concluded in November 2022, and McMahon returned to WWE's board of directors in January 2023.
Grant's lawsuit calls into question the culture of WWE, which she claims actively worked to cover up McMahon's misconduct. She claimed that the task force assigned to investigate Mr. McMahon never interviewed her or requested documents, even though Mr. Grant had indicated a willingness to cooperate.
McMahon served on TKO's board of directors. TKO was officially formed in September when WWE merged with rival UFC, which is owned by Hollywood power broker Ari Emanuel's Endeavor Group. The deal values the new company at more than $21 billion and gives WWE shareholders 49% ownership of the combined company. McMahon was WWE's largest shareholder.
One of the disturbing incidents in the lawsuit details an alleged sexual assault between Grant, McMahon and Laurinaitis that took place at WWE headquarters in 2021, with the two men locking Grant up. He allegedly dragged her behind the door and forcibly restrained her. When her girlfriend begged him to stop, one of the men allegedly told her, “No means yes.”
In a statement to CNN on Thursday, Grant's attorney, Ann Callis, said the lawsuit “alleges two WWE executives who sexually assaulted and trafficked plaintiff Janelle Grant, and who facilitated or condoned that abuse. We will hold the organization accountable.” Then I swept it under the rug. ”
CNN previously attempted to contact Laurinaitis but did not receive a response.
McMahon's departure comes after WWE has struck several lucrative business partnerships in recent days.
this week, Dwayne “The Rock” Johnson, himself a former WWE wrestler, has announced that he will be joining TKO's board of directors.
McMahon touted the partnership in a statement Tuesday. “Few people on the planet understand the convergence of sports, entertainment, media and business like Rock does,” he says.
As part of the deal, WWE will pay Johnson $30 million in stock compensation for promoting the brand.
Netflix recently announced that it will be the exclusive home of “WWE Raw” starting in January 2025. The 10-year deal is worth more than $5 billion, according to TKO's filing.
Neither Netflix nor Johnson's representatives responded to CNN's requests for comment this week.
This story has been updated with additional development and background.
