A settlement has been reached in principle in the lawsuit brought by musician Wesley Eisold against Cody Runnels (Rhodes), WWE, and its merchandise partner Fanatics.
The parties notified the court on Tuesday that they’ve agreed to resolve the case over the “American Nightmare” trademark, pending the drafting and execution of a written settlement agreement. They’re asking the court to stay and administratively close the case while that process is finalized. They say they expect to file a joint stipulation formally dismissing the case within 90 days. Settlement terms were not disclosed.
Eisold is known for leading the band Cold Cave and also co-founded another band, American Nightmare. He owns a trademark for the name in connection with music, clothing, and live performances. In 2021, while Runnels was pursuing his own “American Nightmare” trademark for wrestling purposes, he and Eisold came to an agreement that involved a $30,000 payment from Runnels to Eisold. Like many issues in trademark law, the concern centered around possible confusion in the marketplace. Under the agreement, Runnels was allowed to keep using “American Nightmare” as a wrestling brand. But if the words “American Nightmare” appeared on merchandise, the item must also clearly signal that it refers to Cody Rhodes, not Eisold’s band. The contract says this can be done in one of three specific ways:
- by including the “Cody Rhodes” name,
- by using his likeness (an image of him)
- or by including wrestling-related imagery that makes the connection obvious.
Eisold filed the lawsuit in September 2024 in federal court in California. He alleged that WWE and Fanatics violated that agreement by selling apparel prominently displaying “American Nightmare” without sufficient reference to Runnels or otherwise making it clear that the item was associated with wrestling and not Eisold’s band. Eisold argued that it created confusion among music and wrestling consumers. The musician was seeking damages of at least $150,000, and also possible treble damages, meaning the court might order the defendants to pay up to three times the amount of actual damages if it found the infringement was willful.
WWE and Fanatics, in a motion to dismiss that Runnels also supported, argued that the merchandise did meet the settlement terms because the items included the skull logo associated with Cody, the one also tattooed on his neck. Attorneys for the defendants argued that the image was actually a part of Runnels’ likeness because of the prominent tattoo. They further claimed that the logo itself constituted wrestling-related imagery (“wrestling indicia”) which satisfied the agreement.
Throughout the last several months, the docket indicated that the parties were engaged in ongoing settlement discussions. Multiple stipulations were filed extending otherwise required deadlines for briefings that would have continued litigating the dispute in public. The notice filed on Tuesday confirms that those negotiations have resulted in a settlement in principle that will likely bring the case to an end.
The notice says the parties will either file for dismissal, seek more time, or move to reopen the case within 90 days. The court hasn’t yet ruled on the parties’ joint request to continue the stay on the case, but joint requests are rarely denied.
Requests for comment sent to attorneys representing each party in the case were not immediately returned.
