Detroit Police & Fire Retirement System Files Class Action Lawsuit Against Vince McMahon

It was reported earlier that Vince McMahon’s actions in WWE no longer require approval from stockholders.

Sportico is reporting that the Detroit Police and Fire Retirement System has filed a lawsuit against Mr. McMahon. The lawsuit was filed this past Thursday (Jan. 12). The plaintiffs are seeking a declaration to block McMahon from regaining control of WWE’s Board of Directors and executing a sale of the company.

The complaint was filed in Delaware’s Court of Chancery. The retirement system expects that the lawsuit be recognized as a class action on behalf of other WWE stockholders. The report values ​​WWE at $8.6 billion for a potential sale.

According to the complaint, McMahon has breached his fiduciary duties as the controlling stockholder of WWE in an attempt to “impose his personal will on WWE and its “board” by purporting to adopt a package of invalid and inequitable bylaw amendments that would hamstring the Board from making critical business decisions.” The filing further claims that McMahon’s return to the company was a “corrupt-and unlawful-dealing.” The WWE Board of Directors had previously blocked McMahon’s attempt to return to the company, stating it “would not be prudent from a shareholder value perspective.”

The complaint also alleges that McMahon has maliciously exercised his control over the company’s stock as leverage by threatening to “withhold support” for the upcoming television deals and “hold WWE hostage” unless he gets reinstated.

McMahon’s return to the WWE Board of Directors earlier this month caused Stephanie to resign from the company. Vince was later elected as the new Executive Chairman of the Board.

Scott Fellows also sued McMahon last week, reasoning that McMahon breached his fiduciary duties to the company.