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A settlement has been reached in the lawsuit filed against WWE, Cody Rhodes and Fanatics by Boston-area hardcore punk band singer Wesley Eisol (who claimed he owned the rights to "The American Nightmare" trademark) before The United States Court, Central District of California (Western Division, Los Angeles), according to a three-page notice filed before the court earlier today. News of the settlement was first reported by PostWrestling.com.
The notice, filed by both sides, asked the court to pause the case as "Plaintiff Wesley Eisold and Defendants Cody Runnels, World Wrestling Entertainment, LLC, and Fanatics, LLC have reached a settlement in principle, subject to execution of a written settlement agreement. The Parties anticipate that a settlement agreement will be executed and that they will jointly stipulate to dismiss the entire case within 90 days. To allow the Parties to focus on drafting the settlement agreement, the Parties request that the Court stay and administratively close this action. Within 90 days of the Court’s order, the Parties shall file (1) a stipulation and proposed order for dismissal of the action; (2) a request to extend the stay; or (3) a motion to reopen the case."
The filing also included a two-page motion for the Court to sign off on regarding the Settlement, but as of this writing, the Court has not issued that decree.
On 11/1/24, Esold stated that he owned the rights to the "American Nightmare" trademark (the name of his band) and had previously come to an agreement with Rhodes when the WWE Champion had attempted to trademark the name several years ago. That deal, according to the lawsuit, notes, "Eisold allowed Runnels to use (but not register) the Runnels Mark in clothing and apparel on the express condition that the only clothes and apparel that Runnels was allowed to sell had to prominently feature Runnels’ name, Runnels’ name and likeness, or significant indicia of wrestling—which must be 75% or larger than the Runnels Mark."
Eisold's lawsuit stated that he and Rhodes entered into that agreement in 2021, which at the time, included a $30,000 payment to Eisold.
The lawsuit alleged that the defendants are selling items that ignore the agreement between Eisold and Rhodes, noting, "The Runnels clothes are brandished with the words “American Nightmare” but do not include Runnels’ name, his name, likeness, or indicia of wrestling (or do so in puny fashion). The counterculture-style clothes often feature a winged skull embossed with the stars and stripes (“Runnels Logo”), a black-and-white winged skull, or various representations of the U.S. flag. . Widespread confusion about Runnels’ use of the Eisold Mark persists among WWE fans and Runnels’ fans. Legions of American Nightmare fans ask Eisold if he endorses Runnels or the wrestler’s use of the Eisold Mark and his image. Eisold’s fans frequently buy the Runnels clothes by accident, Runnels’ fans regularly buy the Eisold clothes by mistake, and fans of both inadvertently make and purchase apparel that mix references to both the band and to Runnels."
The lawsuit also alleged that, "Eisold’s fans frequently buy the Runnels clothes by accident, Runnels’ fans regularly buy the Eisold clothes by mistake, and fans of both inadvertently make and purchase apparel that mix references to both the band and to Runnels."
Eisold was seeking a jury trial, a judgment against Rhodes that he committed breach of contract, federal trademark infringement, and California trademark infringement, a judgment against Fanatics and WWE "that they have committed inducement of breach of contract, intentional interference with contractual relations, federal trademark infringement, and California trademark infringement under 15.S.C. § 1114, California Business & Professional Code section 17200 et seq., and California common law" as well as damages in the amount of $900,000 and an injunction against the defendants to prevent the sale of Rhodes shirts that violate Eisold's trademark as well as attorney's fees and any other relief the court may deem fitting.
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