Vince McMahon and his insurers have agreed to pay $42.5 million as part of a proposed settlement of shareholder litigation challenging WWE’s 2023 merger with UFC, based on Bloomberg Law.
The shareholder plaintiffs have raised concerns over how the settlement was initially disclosed. Per their filing, an earlier securities filing by TKO Group presented an “incomplete picture” because it disclosed WWE’s $105 million contribution without revealing the additional $42.5 million being paid by McMahon and his insurers.
The payment comes in addition to the $105 million previously agreed to by WWE, bringing the total proposed settlement to $147.5 million.
The litigation stems from the transaction that combined WWE and UFC under TKO Group Holdings in September 2023.
Shareholders challenged the deal on the basis that it unfairly benefited McMahon and other insiders. Among the issues raised in the litigation were McMahon’s role in the process leading to the merger and whether the transaction was structured in the best interests of WWE shareholders.
The case had been slated to go to trial in June. That trial was canceled after the parties reached a settlement in principle.
Under the proposed arrangement, WWE will contribute $105 million while McMahon and his insurers will contribute another $42.5 million, producing a combined settlement of $147.5 million.
The agreement is not yet final and remains subject to court approval.