Attorneys for Vince McMahon and World Wrestling Entertainment each filed motions before the U.S. District Court for the District of Connecticut, requesting the Court order that the lawsuit filed by former WWE employee Janel Grant be sent to arbitration.
Grant's lawsuit against McMahon, WWE and former WWE executive John Laurinaitus alleges “that McMahon lured her with promises of career advancement, and then he allegedly exploited her and trafficked her to other men inside the company.” Grant signed a nondisclosure agreement in 2022 with McMahon, agreeing to a payment of $3 million to not publicly disparage him or to discuss their relationship. She alleges in the suit that he stopped making payments after $1 million, one third of the agreement, was received. Her lawsuit is seeking to void the NDA and additional financial damages.
McMahon's motion claims that the agreement he and WWE entered into with Grant included a clause that “any dispute arising under or out of” that agreement to be arbitrated, therefore Grant even filing her lawsuit was "in direct violation of her agreement to arbitrate."
The motion claims, "The Settlement Agreement was drafted when Plaintiff and Defendant McMahon, who had engaged in a consensual, intimate relationship for approximately three years, sought to memorialize the end of that relationship. In January 2022, Plaintiff and Defendant McMahon, each represented by counsel, negotiated and executed the Settlement Agreement, with Defendant McMahon signing on his own behalf and, in his capacity as Chairman, on behalf of WWE. That agreement, which explicitly sought “to avoid any damage caused by public disclosure of private matters known to Grant and McMahon,” included, among other provisions, terms for Plaintiff’s departure from the company where they both worked (WWE), the payment of $3 million to Plaintiff, mutual releases, and a comprehensive agreement to arbitrate any and all disputes."
McMahon's Motion states he made the initial payment of $1 Million to Grant, but "When Defendant McMahon later learned that Plaintiff, despite her representations and warranties, had breached the Settlement Agreement by wrongfully disclosing both the existence of the Settlement Agreement and their relationship, he exercised his contractual right to withhold further payment otherwise owed under the Settlement Agreement. In response, Plaintiff sought to besmirch him. She intentionally violated the Settlement Agreement’s arbitration provision and filed a false and defamatory public lawsuit."
The Motion also states, " As this is a pre-answer motion, Defendant McMahon does not specifically address the legal sufficiency or substantive merits of Plaintiff’s counts asserted against him. For the avoidance of doubt, however, Defendant McMahon vehemently and categorically denies all allegations of Case 3:24-cv-00090-JAM Document 85-1 Filed 12/23/24 Page 8 of 33 3 wrongdoing in the Complaint, including Plaintiff’s outrageous false claims intended for publicity. When the Complaint’s allegations are adjudicated in the proper forum (arbitration), witnesses are called to testify under oath, and all communications between the parties are produced (including those authored by Plaintiff, many of which were intentionally omitted from the Complaint), the allegations and claims will be disproven.2 Meanwhile, for the foregoing reasons and as set forth further below, Defendant McMahon’s Motion to Compel Arbitration should be granted."
McMahon's 52-page filing states that McMahon and Grant were in a consensual relationship for "just under three years" and initially offered Grant $1 million. The motion claims Grant felt that amount was not enough given the loss of her earning potential and the fact that she would be exiting her position as a Director in WWE in under a year and hired her own counsel. A declaration from McMahon that is included in the Motion states that McMahon's attorney (Jerry McDevitt) was not involved in the situation until Grant asked for a larger sum. The final agreed upon amount would be for $3 million, to be paid installments through February 2026. McMahon is arguing that in signing that agreement, Grant agreed she would not bring any additional claims against McMahon (nor he against her) and that would also release Grant from being able to bring any future complaints against WWE.
McMahon's motion also states - "The Settlement Agreement also contains a clear severability provision: “In the event that any provision of this Agreement is held to be void or unenforceable by any arbitration panel or court reviewing an arbitration decision, the remaining provisions shall nevertheless be binding provided, however, if any of the confidentiality obligations of this Agreement are ever contended to be unenforceable by Grant, or are found to be unenforceable by any tribunal, Grant agrees that she shall return all monies paid pursuant to this Agreement to McMahon.”"
The Motion also claims "Defendant McMahon will establish in arbitration that each argument Plaintiff raises to invalidate the Settlement Agreement fails under applicable law." The Motion also argues that Grant's claims that she signed the agreement under duress would not stand in Connecticut Court as "courts in Connecticut have repeatedly held that “if the party who executed the contract under duress accepts the benefits flowing from it or remains silent or acquiesces in the contract for any considerable length of time after opportunity is afforded to annul or avoid it,” that party, because of his or her ratification of the contract, cannot assert duress or undue influence as a matter of law."
The Motion included a signed declaration from Vince McMahon stating that his version of events are true under penalty of perjury.
The WWE Motion mostly covers the same ground, but points out the McMahon-Grant negotiations for their agreement took place over the course of eight days and that that there were previous attempts by McMahon and John Laurinaitis to move the case to arbitration in April 2024 (before the case was paused) and that "Grant did not file an opposition to the then-pending Motions to Compel Arbitration by the June 4, 2024 deadline to do so."
Grant's attorney's must respond by 1/13/25. One should expect Grant's side to present arguments against moving the case to arbitration.
The WWE Board of Directors investigation into McMahon’s relationships with Grant and other women that were uncovered resulted in the revelation that over $14.6 million of the $20 million made in payments should have been recorded as company business expenses. The company amended SEC filings to include those expenses and last year, announced the investigation had been completed with Vince McMahon reimbursing the company.
WWE later announced in a SEC filing, "On July 17, 2023, federal law enforcement agents executed a search warrant and served a federal grand jury subpoena on Mr. McMahon. No charges have been brought in these investigations. WWE has received voluntary and compulsory legal demands for documents, including from federal law enforcement and regulatory agencies, concerning the investigation and related subject matters."
To date, no criminal charges have been filed against McMahon and the status of the investigation remains unknown. A pause on the Grant lawsuit requested by the government expired earlier this month. The United States District Attorney overseeing the McMahon operation has announced he will be resigning ahead of the Trump administration coming into power. How that will cascade over into the McMahon operation remains to be seen. Linda McMahon is expected to be part of Trump's cabinet.
The Grant lawsuit led to McMahon exiting from his role on WWE parent company TKO Group Holdings' Board of Directors as well as his decision to unload a great amount of stock in the company.
Grant's attorney and PR team have not yet commented on yesterday's filings.
Some CEO pantload: "Naw."