Note: This story contains graphic descriptions of sexual abuse that may be offensive to some readers or painful to survivors of sexual assault.

Vince McMahon has resigned as executive chairman and board member of TKO Group Holdings, parent company of WWE, after a former employee accused him of sex trafficking and sexual misconduct, USA TODAY Sports confirmed.

McMahon announced he is stepping down one day after Janel Grant, a former employee at WWE headquarters, filed a lawsuit against McMahon, WWE and the company’s former head of talent relations, John Laurinaitis.

According to court documents, McMahon allegedly pushed Grant into "a physical relationship in return for long-promised employment at WWE," which involved a forced sexual relationship, sharing of private photos and videos, as well as coercing Grant into having sexual relations with other WWE staffers, including Laurinaitis.

"McMahon also subjected Grant to acts of extreme cruelty and degradation that caused Grant to disassociate and/or become numb to reality in order to survive the horrific encounters," the lawsuit states.

“I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name,” McMahon said in a statement to USA TODAY Sports on Friday. “However, 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.”

LAWSUIT:Vince McMahon accused of sex trafficking, assault of former WWE employee he paid for NDA

The lawsuit states that in January 2022, McMahon said his wife, Linda McMahon, found out about the relationship with Grant, and he "wanted to ensure that Grant would remain silent about his personal misconduct in order to preserve his controlling interest in WWE." He advised Grant to sign a non-disclosure agreement and would pay her for it. The two sides agreed for a payment of $3 million for Grant signing the NDA, but after it was signed, Grant said she only received $1 million and didn’t receive the rest of the agreed amount.

The lawsuit asks for a ruling that the NDA is invalid under state and federal law because McMahon breached the agreement and took part in sex trafficking. The suit states Grant will prove in a trial she will need "lifelong treatment" because of the "pain and suffering" caused by McMahon.

In the statement provided to USA TODAY Sports on Friday evening, McMahon again denied the allegations. 

“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," McMahon said.

McMahon had served as executive chairman of TKO Group Holdings, the company that owns WWE along with the UFC. He made a public appearance with the company on Tuesday when Dwayne "The Rock" Johnson was appointed as a board member for the company, and he rang the opening bell at the New York Stock Exchange. TKO had previously said McMahon had no part in the day-to-day operations of WWE.

The news of McMahon's departure came as "Smackdown" took place at the Kaseya Center in Miami. There was no mention of McMahon during the live broadcast, and WWE will hold its annual Royal Rumble event Saturday at Tropicana Field.