Former NFL linebacker Shawne Merriman filed suit in Delaware against Lights Out XTreme Fighting Inc., the startup mixed martial arts league he holds a one-third stake in, over claims that the state revoked the league’s corporate status after it was mismanaged into a $170,000 tax debt.
The lawsuit, filed Tuesday in Delaware Chancery Court, seeks internal files from the league to shed light on the value of Merriman’s stake, the nature of any wrongdoing by its board or executives, and whether its corporate status in Delaware “can be, or should be, revived.”
Lights Out didn’t immediately respond to a request for comment Wednesday. The league is named after Merriman, a fearsome pass rusher who was known as “Lights Out” when he played for the San Diego Chargers and Buffalo Bills.
The six-page complaint, which is short on details, doesn’t allege any wrongdoing outright. It seeks documents under a Delaware law giving corporate shareholders broad inspection rights, especially if they credibly suspect self-dealing or mismanagement.
Records cases often—but don’t always—reflect an attempt to drum up fiduciary breach claims.
Cause of Action: Section 220 of the Delaware General Corporation Law.
Relief: Disclosure of relevant league records; costs and fees.
Attorneys: Merriman is represented by FisherBroyles LLP.
The case is Merriman v. Lights Out Xtreme Fighting Inc., Del. Ch., No. 2022-0195, complaint filed 3/1/22.
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