A notable decision by the federal courts has ruled against the former attorney of Vince McMahon, the former WWE chief, for preventing the disclosure of vital documents sought by a grand jury. This ruling is part of an ongoing investigation involving allegations of sexual misconduct and multimillion-dollar settlements with two former female employees.
On Monday, the 2nd U.S. Court of Appeals in New York maintained the lower court's decision stating that the documents were not shielded by attorney-client privilege due to the 'crime or fraud' exception. The judicial panel determined that prosecutors held justifiable grounds to suspect that McMahon and his lawyer might have illegally bypassed WWE's internal regulations and fabricated false records to obscure claims and agreements from the company.
The court revealed that although McMahon's legal representative submitted numerous materials upon receiving a grand jury subpoena, they withheld 208 documents, citing attorney-client privilege. However, the court's decision concluded that these documents should be disclosed to the grand jury.
While the court documents refrain from naming McMahon directly, a source familiar with the case confirmed his involvement, asking for anonymity to discuss private aspects not yet publicly disclosed. The U.S. Attorney's Office in Manhattan, as well as representatives for McMahon, have declined to comment on the pending investigation.
This revelation contradicts McMahon’s earlier assertions earlier this year, where he stated investigations by various agencies had concluded with no substantial findings. The Securities and Exchange Commission had settled charges against McMahon for failing to divulge the details of the settlements.
As of now, the grand jury investigation continues, with no formal indictments handed down. The situation casts a cloud over McMahon's previous claims that his legal battles were behind him, as the appellate court's decision disclosed new insights into the grand jury proceedings.
One of the former employees, Janel Grant, who publicly accused McMahon of sexual misconduct, declined to comment. Grant had pursued a federal lawsuit previously accusing McMahon and a former executive of misconduct, which allegedly led to her coerced resignation from WWE and a non-disclosure agreement worth $3 million. This lawsuit aims to invalidate the agreement, alleging McMahon breached its terms.
The original lawsuit aligns with the claims under internal investigation by WWE when McMahon resigned as the CEO in 2022. Now, with a new chapter unfolding in the grand jury inquiry, both the $3 million and an additional $7.5 million settlement with another employee are under scrutiny.
In September 2023, subpoenas were served upon McMahon's attorney and their firm to obtain any communications concerning McMahon and the settlement agreements. The appeals court noted these settlements were structured to prevent the company and its auditors from becoming aware of them, thus allegedly linking them to a 'criminal scheme'.
As the legal saga of Vince McMahon unfolds, the implications of these allegations and the ongoing grand jury investigation are set to feature prominently in both legal circles and the public eye.
