Vince McMahon and Nick Khan have been sanctioned after a judge ruled that they “acted recklessly” by using the Signal app to destroy evidence.
WWE shareholders are suing a group of board members that includes McMahon and Khan in relation to the company’s acquisition by the Endeavor Agency. The shareholders allege that McMahon pushed the sale in Endeavor’s favor because he would end up with a role in the new company post-merger, and ignored other potential suitors that would benefit them.
According to a new legal document filing (via POST Wrestling), the presiding judge has ruled that McMahon and Khan “acted recklessly” by using Signal to automatically delete messages, which would have been used as evidence in the case.
The defense must now meet the burden of proof
Most civil lawsuits make the accusing party prove its claims. However, due to the sanctions, the judge ruled that the defense team must prove the following presumed facts are not true with “clear and convincing evidence.”
- Emanuel’s promise to provide Vince with a continued role at any post-merger company after a transaction influenced Vince’s decision-making with respect to the merger.
- Emanuel’s offer of indemnification and other legal support related to pending federal investigations of Vince’s alleged misconduct influenced Vince’s decision-making with respect to the merger.
- Vince decided to pursue a transaction with Endeavor in 2022, before the Company initiated the strategic review process.
- Khan communicated with Emanuel between August and December 2022 to facilitate a transaction between WWE and Endeavor.
- Vince and Khan worked with [advisement firm] Raine to steer the process toward a deal with Endeavor and away from other potential bidders.
Vince McMahon, Nick Khan, Paul Levesque, George Barrios, and Michelle Wilson are all listed as defendants in the case, which is scheduled to begin on June 8. WWE and TKO are not defendants in the lawsuit. McMahon, Khan, Levesque, Stephanie McMahon, and former WWE executive Brad Blum are listed as the group of people who used Signal.
Despite the ruling, the defendants have not been found liable in the case. That decision will be made by the judge after the trial concludes.
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