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- Vince McMahon resigned from the board of directors of WWE's parent company Friday evening.
- The resignation follows a lawsuit from a former WWE employee accusing the WWE executive of sexual misconduct.
- McMahon referred to the serious accusations as "baseless" and said he would defend himself in court.
Wrestling icon Vince McMahon resigned Friday from WWE's parent company the day after a former employee filed a federal lawsuit accusing him and another former executive of serious sexual misconduct, including offering her to a star wrestler for sex.
According to a statement released late Friday, McMahon stepped down from the board of directors at WWE's parent company, TKO Group Holdings. He continued to deny wrongdoing following the lawsuit filed by Janel Grant, who worked in the company's legal and talent departments.
Instead, McMahon said that his resignation was "out of respect" for WWE.
The suit includes allegations that McMahon, now 78, forced Grant into a sexual relationship in order for her to get and keep a job and passed around pornographic pictures and videos of her to other men, including other WWE employees.
"I stand by my prior statement that Ms. Grant's lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth," he said in the statement. "I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name."
In a Friday message, WWE President Nick Khan also updated staff on the news, telling them McMahon would "no longer have a role with TKO Group Holdings or WWE," per a memo sent to Business Insider.
McMahon stepped down as WWE's CEO in 2022 amid an investigation into allegations that match those in the lawsuit filed in US District Court in Connecticut, where WWE is based.
The WWE board began investigating allegations that McMahon paid off accusers for their silence following his resignation as CEO.
Despite leaving his official post, McMahon remained a controlling shareholder, and less than six months after the allegations, McMahon returned to the company as a member of the WWE board.
McMahon was the leader and most recognizable face at WWE for decades. When he purchased what was then the World Wrestling Federation from his father in 1982, wrestling matches took place at small venues and appeared on local cable channels. WWE matches are now held in professional sports stadiums, and the organization has a sizable overseas following.
WWE merged last April with the company that runs Ultimate Fighting Championship to create the $21.4 billion sports entertainment company TKO Group Holdings, and McMahon served as that group's executive chairman of the board until Friday.
TKO Group Holdings referred Business Insider to McMahon's statement.
"Mr. McMahon does not control TKO nor does he oversee the day-to-day operations of WWE," TKO Group said earlier this week. "While this matter pre-dates our TKO executive team's tenure at the company, we take Ms. Grant's horrific allegations very seriously and are addressing this matter internally."
Representatives for Grant did not immediately respond to a request for comment from Business Insider.