Lights Out® Enterprises Files Sanctions Motion in A.R.I. Dispute
Lights Out® Enterprises has filed a motion for sanctions against Applied Real Intelligence (A.R.I.). The motion alleges that A.R.I. is concealing the identities of its limited partners. The legal filing follows A.R.I.'s stated unwillingness to disclose the names.
- The legal battle began in February 2026 when Lights Out® Enterprises, founded by former NFL player Shawne Merriman, filed a lawsuit against A.R.I. - The initial lawsuit alleges that A.R.I. and its managing partner, Zack Ellison, attempted a "wrongful takeover" of Lights Out® after a dispute over a loan agreement. - Lights Out® claims that A.R.I. tried to seize control of the company by displacing Merriman as CEO and installing Ellison as the sole director without a lawful foreclosure process. - The original case was filed in Clark County, Nevada, but was subsequently moved to federal court by A.R.I. - Lights Out® contends that the motion to move to federal court was a tactic by A.R.I. to avoid disclosing its limited partners, a requirement under federal law. - The core of the dispute stems from a Loan and Security Agreement established in 2024 between the two companies. A.R.I. claims Lights Out® defaulted on interest payments between October and December 2025. - Lights Out® Enterprises operates in the mixed martial arts (MMA) promotion industry with its "Lights Out XF" brand. A.R.I. is an investment firm that provides debt financing to startups.
