Detroit police, firefighters sue WWE and Vince McMahon
DETROIT (CBS DETROIT) - Detroit's police and fire pension system accuses WWE CEO Vince McMahon of violating company and state laws.
The Police and Fire Retirement System (PFRS) has a $2.8 billion fund and has invested $100,000 in the wrestling giant.
Officials are now trying to stop McMahon from retaking control of the company's board of directors after he was removed in July 2022 for paying out hush money to four women to cover up alleged sexual misconduct.
The lawsuit seeks class-action status and argues that McMahon breached his fiduciary duties as the controlling stockholder in order to get himself back on the board, which could speed up a sale.
In a statement, the PFRS wrote in part it "believes that there is an important public policy issue at stake given the allegations leveled against McMahon and his efforts to undermine the orderly conduct in running the enterprise for the benefit of its shareholders and employees."
The legal battle could possibly slow down the process of any sale.
