John Laurinaitis’s agreement to cooperate with Janel Grant in her federal civil suit against Vince McMahon and World Wrestling Entertainment could have rippling effects across several lawsuits.
Laurinaitis agreed on Wednesday to a confidential settlement with Grant, according to a joint statement. Grant also filled a stipulation of dismissal in Connecticut federal court dropping Laurinaitis as a defendant. He also agreed to a confidential settlement.
Plaintiffs in the shareholder suit filed against Vince McMahon, Linda McMahon, WWE and TKO in Delaware’s Court of the Chancery were seeking information related to his sexual assault allegations as part of discovery. According to Wrestlenomics, McMahon said the discovery demands were attempts to “harass him and pressure him,” several days ago.
The shareholders in the suit said McMahon failed to follow his fiduciary duties by selling WWE to TKO. They accused him of not taking better offers for the company in place of a deal that would allow him to stay onboard WWE and the parent company. The complaint in the shareholder suit accused McMahon of seeking a buyer for WWE that would tolerate the sexual assault and sex trafficking accusations against him.
After WWE was sold to TKO, McMahon was made Executive Chairman. He later resigned the position after Grant filed suit in federal court.
Testimony from Laurinaitis, as well as other discovery in the Grant case, could be used in subsequent cases in state and federal court. Depending on what the judge in each case rules as the scope of discovery, as well as the Federal Rules of Evidence and state laws of evidence, discovery in other ongoing cases could be used in other ongoing cases.
McMahon is also being sued for negligence by several survivors of the Ring Boy scandal, along with WWE, TKO and Linda McMahon.
WWE and McMahon are expected to file a motion to compel arbitration in the Grant case. They believe Grant should have to argue her sexual assault and sex traficking allegations in arbitration per rules of a non-disclosure agreement she signed with McMahon. Federal law in the last several years has made it illegal to use NDAs or arbitration hearings in cases of covering up sex assault.
Attorneys for McMahon and WWE have argued the federal legislation doesn’t apply because those laws were passed in cases of pre-signed NDAs and arbitration clauses, not cases in which alleged sexual assault or sex harassment had already occurred.
The defendants in the Grant case have until June 13 to file their arbitration motions.