WWE founder Vince McMahon resigns from TKO Group after being accused of sexual assault and trafficking in new lawsuit

Vince McMahon, executive chairman of the board of TKO Group Holdings and founder of wrestling giant WWE, has resigned his positions at both companies, according to a WWE memo obtained by CNBC and confirmed by the company.

"Vince McMahon has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors. He will no longer have a role with TKO Group Holdings or WWE," said Nick Khan, president of the WWE.

The announcement came in the wake of allegations made public Thursday, of sexual assault and sex trafficking, against McMahon.

McMahon has denied the allegations. But he said in a statement late Friday that, "out of respect for the WWE Universe, the extraordinary TKO business and its board members and shareholders, partners and constituents, and all of the employees and Superstars who helped make WWE into the global leader it is today, I have decided to resign from my executive chairmanship and the TKO board of directors, effective immediately."

The latest allegations against McMahon were in a lawsuit filed by Janel Grant — who alleges McMahon directed her to have sex with a WWE "superstar" and other men. Grant's suit seeks to void a nondisclosure agreement Grant said she reached with McMahon in early 2022.

Grant's suit in U.S. District Court in Connecticut says the billionaire McMahon agreed to pay her $3 million as part of that deal, but ended up only paying her $1 million in exchange for her silence about his conduct.

In addition to McMahon, 78, the complaint names as defendants WWE and John Laurinaitis, the company's former head of talent relations and general manager.

The complaint comes six months after federal law enforcement agents executed a search warrant on McMahon and