Vince McMahon on Friday resigned as executive chairman of TKO, a company formed after the $21 billion World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) merger.

The 78-year-old billionaire’s resignation follows allegations of sex trafficking by former WWE employee Janel Grant, Daily Mail reported.

A statement from McMahon reads: “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.

“I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name.”

He added that he has “decided to resign from my executive chairmanship and the TKO board of directors, effective immediately”.

Grant, who signed a $3 million settlement in 2022, filed a new lawsuit against McMahon, claiming that he stopped making payments after the initial $1 million instalment and seeks to void the agreement.

She claims she suffered bruising and bleeding after McMahon sexually assaulted her and that he, along with another WWE executive, locked her in a room at the WWE’s Stamford, Connecticut headquarters in June 2021.

The married McMahon is additionally accused of trafficking Grant to other men and sharing nude photographs of the plaintiff. Grant is seeking unspecified damages.

The WWE previously described McMahon’s sexual relationship with Grant as “consensual” in a 2022 statement.

“I wanted to inform you that Vince McMahon has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors,” WWE president and TKO board member Nick Khan said in an email to staff on Friday night.

“He will no longer have a role with TKO Group Holdings or WWE.”

McMahon’s departure coincides with a reduction in his role within the company.

This week, former wrestler Dwayne ‘The Rock’ Johnson was appointed to the board of directors at TKO, and McMahon’s son-in-law Paul Levesque, also known as Triple H, as chief content officer.