The 2nd U.S. Court of Appeals in New York has upheld a lower court’s ruling requiring the release of documents previously withheld from a grand jury investigating Vince McMahon’s management of settlement payments. The Associated Press reports that three judges determined these documents were not protected by attorney-client privilege due to a “crime or fraud” exception.
The investigation centers on McMahon’s handling of multimillion-dollar settlements with two former WWE employees who raised sexual misconduct allegations. While McMahon’s attorney submitted numerous documents to the grand jury, 208 were withheld under attorney-client privilege claims.
Because the settlement agreements resolving the Victims’ claims were ‘structured and negotiated … to keep them hidden from (the Company),’ the district court found that ‘all communications about the claims and settlement agreements were made in furtherance of the criminal scheme to keep (the Company) and its auditors unaware of the allegations.’
The court’s decision relates to settlements of $3 million and $7.5 million with former employees. One of these individuals, Janel Grant, filed a lawsuit alleging coercion into leaving WWE and signing a nondisclosure agreement, which she contends should be invalidated due to incomplete payment of the settlement amount.
The U.S. Attorney’s Office in Manhattan has not commented on the current status of the grand jury investigation. This development follows McMahon’s settlement with the SEC, which included a $400,000 fine and $1.3 million reimbursement to WWE.