Detroit’s Police and Fire Retirement System has filed a lawsuit against WWE executive chairman Vince McMahon, who recently returned to the company only several months following him announcing his retirement, seeking a declaration that would effectively block McMahon from regaining control of WWE’s board of directors and prevent him from expediting a sale, according to Sportico.
The suit was filed in Delaware’s Court of Chancery and requests that the complain be recognized as a class action on behalf of other WWE stockholders, and it could potentially put some hurdles to slow a potential sale.
The filing states that McMahon, who owns approximately 39% of WWE’s equity, has breached fiduciary duties as controlling stockholder by trying 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 complaint argues that McMahon owns about 92% of outstanding Class B shares, which contain 10 votes per share, whereas Class A shares hold only one vote per share, stating that “McMahon controls 81% of WWE’s total voting power.”
The complaint says that McMahon’s moves recently have violated both Section 141 of the Delaware General Corporation Law and WWE’s charter.