The actions signify a step up in the continuing probe into claims that McMahon paid women millions of dollars after being accused of sexual misconduct.
According to information released by the company on Wednesday, federal law enforcement officers delivered a federal grand jury subpoena and carried out a search warrant on World Wrestling Entertainment CEO Vince McMahon last month.
The moves mark a step up in the continuing probe into claims that McMahon paid millions of dollars in settlements to women over the years after they accused him of sexual misconduct.
Additionally disclosed by WWE on Wednesday was the fact that McMahon “went on medical leave after undergoing major spinal surgery.”
WWE stated in its quarterly report to the Securities and Exchange Commission that McMahon will “remain on medical leave until further notice but will remain Executive Chairman” throughout his leave, which started on July 21.
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When contacted on Wednesday for comment, the company stated that it thought the subpoena and search warrant were “a continuation of the investigation that started last summer.” WWE has been cooperative at all times and recognises and appreciates the government’s need for a thorough process.
In a different statement, McMahon said to CNBC: “I have consistently denied any intentional misconduct and will continue to do so. I have faith that the government’s inquiry won’t turn up any evidence of misconduct.
WWE and competitor UFC reached an agreement in April to merge, creating a new publicly traded company that will be governed by Endeavour Group.
According to WWE’s statement on Wednesday, Endeavour and WWE anticipate the deal to close in the second half of this year.
In a statement submitted to the SEC on Wednesday, WWE stated that it “has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters.”
Linda McMahon, formerly the CEO of WWE, held the position of administrator of the U.S. Small Business Administration while serving in the cabinet of former President Donald Trump.
Just one day after Trump, a longtime friend of McMahon’s, was charged by a federal grand jury in Washington, D.C., on felony charges connected to his attempts to overturn his loss in the 2020 presidential election, McMahon’s federal search warrant and grand jury subpoena were made public.
During the three and six months ended June 30, according to a statement released by WWE on Wednesday, “the Company incurred $5.3 million and $7.1 million, respectively, of expenses related to costs incurred” in conjunction with a separate investigation by a special committee appointed by the board of the firm.
According to WWE, McMahon has promised to cover “all reasonable costs incurred in connection” with the special committee’s work.According to the statement, Mr. McMahon has so far reimbursed the company for expenses that it has incurred and paid with about $17.4 million.
It’s unclear how much more McMahon will need to pay WWE in compensation after that.