World Wrestling Entertainment (WWE) boss Vince McMahon has stepped down as chair of the company after one of his former employees accused him of sex-trafficking.

“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 in a statement on Friday.

He resigned as executive chairman of TKO, the parent company of WWE, the BBC reported.

On Thursday, Janel Grant alleged that she was also sexually assaulted at the company. Janel Grant alleges McMahon and another ex-executive, John Laurinaitis, sexually assaulted and trafficked her to entice wrestling talent.

Former WWE employee Janel Grant accused them both of trafficking her to other men “as a sexual pawn to secure talent deals with prospective wrestlers they were recruiting”.

McMahon’s statement added: “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.”