Vince McMahon, the former CEO of World Wrestling Entertainment (WWE), has agreed to pay a total of $1.7 million to settle charges from the Securities and Exchange Commission (SEC) regarding his failure to disclose two significant settlement agreements with women related to allegations of sexual misconduct.

According to the SEC, McMahon entered into two undisclosed agreements, totaling $10.5 million - one in 2019 for $3 million with a former employee, and another in 2022 for $7.5 million with an independent contractor. These agreements were intended to prevent the women from revealing claims against him and WWE, which he did not disclose to the company’s board or legal department, thereby violating internal accounting controls

The SEC's announcement detailed that McMahon's lack of disclosure resulted in material misstatements in WWE’s financial statements for 2018 and 2021, overstating net income by approximately 8% and 1.7%, respectively. Consequently, WWE subsequently had to restate its financials in August 2022. McMahon will pay a $400,000 civil penalty along with $1.3 million to reimburse WWE for the improper reporting linked to these settlements. As stated by the SEC, “Company executives cannot enter into material agreements on behalf of the company they serve and withhold that information from the company’s control functions and auditor.”

In a statement, McMahon expressed relief at resolving the matter, claiming that it was principally a case of minor accounting errors regarding personal payments made during his tenure as CEO of WWE. He mentioned, "I’m thrilled that I can now put all this behind me," without admitting or denying the SEC's findings.

This settlement follows a wave of controversy surrounding McMahon, who stepped down from his role as executive chairman of WWE's parent company, TKO Group Holdings, in January 2024, amid ongoing sexual misconduct allegations made by former employees. McMahon has consistently denied any wrongdoing, despite multiple reports detailing previous hush money payments allegedly totaling over $12 million to silence claims from various women over several years.

The renewed allegations focused on serious claims made against both McMahon and WWE, which have sparked significant media attention and legal scrutiny. The SEC's settlement represents the culmination of nearly three years of investigations into McMahon's actions during his leadership role at WWE. For further reading, you can check the Associated Press article.