Wrestling icon Vince McMahon resigned from WWE's parent company on Friday after a former employee accused him of serious sexual misconduct.

A woman who worked in the legal and talent departments for TKO Group Holdings, filed a lawsuit on Thursday alleging that McMahon forced her into a sexual relationship in order for her to get and keep her job and passed around pornographic videos of her to other men, including other WWE employees.

McMahon denied the allegations at the time of his resignation and said the "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."

TKO acknowledges 'horrific allegations'

McMahon has been one of the most recognizable faces in pro wrestling for decades. He purchased what was then the World Wrestling Federation from his father in 1982 and turned it into the international phenomenon now known as WWE.

WWE merged with the company that runs Ultimate Fighting Championship (UFC) last year to create the $21.4 billion (€19.7 billion) sports entertainment company TKO Group Holdings.

McMahon served as executive chairman to the board at TKO until his resignation on Friday.

A spokesperson for TKO said earlier in the week that McMahon did not control the company or "oversee the day-to-day operations of WWE."

The spokesman said TKO was taking the "horrific allegations very seriously" and that the matter was being addressed internally.

zc/kb (AP, EFE)