Pat McAfee
A Delaware Chancery Court judge has sanctioned Vince McMahon and WWE President Nick Khan in the ongoing WWE shareholder lawsuit over the 2023 Endeavor merger, finding that both men destroyed evidence by using the Signal messaging app’s auto-delete function to wipe messages they had a legal duty to preserve.
In a 41-page opinion, Vice Chancellor J. Travis Laster ruled that as a consequence, five damaging facts will be treated as presumptively true when the case goes to trial in June. McMahon and Khan must now disprove those facts with clear and convincing evidence rather than the plaintiffs having to prove them.
The five facts presumed true at trial are: that McMahon predetermined the merger deal with Endeavor CEO Ari Emanuel; that Emanuel’s promise to provide McMahon with a continued role at the post-merger company influenced McMahon’s decision-making; that Emanuel’s offer of indemnification and legal support related to pending federal investigations of McMahon’s alleged sexual misconduct influenced his decision-making; that McMahon received a non-ratable benefit from the merger in the form of a continued role at TKO; and that Nick Khan knew about McMahon’s private negotiations with Endeavor concerning the potential merger in 2022.
The ruling also found that Paul Levesque, Stephanie McMahon and former WWE executive Brad Blum used Signal’s auto-delete function, though the specific sanctions apply only to McMahon and Khan. The judge described both men’s testimony as “notably strained.” WWE leadership had also twice been instructed by the company’s assistant general counsel to preserve all documents and communications because litigation was likely.
The lawsuit was filed in 2023. It alleges McMahon steered the sale to Endeavor to secure his continued role at the company rather than maximising shareholder value. The defendants have denied the central allegations. The trial is scheduled for June 8 through June 12. McMahon, Levesque, Emanuel and TKO President Mark Shapiro are among those scheduled to testify.
About the Author
