Settlement Reached In American Nightmare Lawsuit

An undisclosed settlement has been reached in principle over the lawsuit filed by Wesley Eisold against Cody Rhodes (real name Cody Runnels), WWE, and Fanatics.

Brandon Thurston of POST Wrestling has reported that the parties notified the California federal court on Tuesday, November 11 that an agreement had been reached to resolve the dispute over the 'American Nightmare' trademark. A written settlement agreement still needs to be executed, but the parties have asked for the court to stay the case while that process is finalised. A joint stipulation to dismiss the case is expected to be made within 90 days.

Wesley Eisold - the lead singer of the band American Nightmare - sued Cody Rhodes, WWE, and Fanatics in November 2024, alleging trademark infringement, breach of contract, and intentional interference with contractual relations.

Eisold holds the 'American Nightmare' trademark for music, clothing, and entertainment services. Eisold and Cody Rhodes previously reached an agreement in March 2021 when Rhodes was part of AEW that Cody could use 'American Nightmare' on merchandise under the stipulation that Rhodes' name, likeness, or wrestling-related imagery was at least 75 per cent larger than the American Nightmare text. Eisold also received a one-time payment of $30,000 from Rhodes.

Within the 2024 lawsuit, Eisold claimed that WWE, Rhodes, and Fanatics had violated the deal he made with Rhodes by selling merchandise which failed to meet the conditions of the 2021 agreement. The lawsuit also claimed there was confusion in the marketplace over 'American Nightmare.'

Fanatics and WWE, with Rhodes supporting the motion, filed to dismiss the lawsuit shortly after it was filed. The parties have been engaged in settlement negotiations for the past several months.

As part of the lawsuit, Eisold was seeking damages of at least $150,000, as well as treble damages of up to $300,000 over federal trademark infringement.