Cody Rhodes Settles “American Nightmare” Lawsuit Over Merch Fight with Punk Singer

The trademark war over the “American Nightmare” name is officially over—and Cody Rhodes, WWE, and Fanatics have settled the dispute outside of court.

According to The Wrestling Observer Newsletter, Cody and the others involved reached an out-of-court agreement with punk musician Wesley Eisold, who originally filed the lawsuit back in November 2024. Eisold—frontman of Cold Cave and founder of the band The American Nightmare—had accused Rhodes of breaking a 2021 agreement over the name’s use on merchandise.

Back when Rhodes was still with AEW, he reportedly paid Eisold $30,000 for the rights to use “American Nightmare” on apparel. But that deal came with strict conditions. The merch had to feature Cody’s name more prominently than the “American Nightmare” branding—something Eisold claimed was being ignored once WWE and Fanatics took over merchandising.

“Runnels paid Eisold $30,000 for the rights that also included that the Rhodes name had to be more prominent than the American Nightmare name.”

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Instead, shirts were released featuring the winged skull logo with stars and stripes—branding Eisold argued was too similar to his own aesthetic. He claimed fans had mistakenly purchased Cody Rhodes shirts thinking they were supporting the band.

“Eisold claimed that created confusion in the marketplace as his fans frequently purchased Rhodes merchandise feeling it was band merchandise.”

The lawsuit originally sought $900,000 in damages and a full jury trial, but after months of legal wrangling, both sides agreed to end things quietly. The court had recently granted multiple extensions as the parties worked through settlement terms, and now it’s clear those talks paid off.

With the settlement finalized, Cody Rhodes and WWE can move forward with the “American Nightmare” brand—without the looming threat of another merch dispute.

Do you think Cody Rhodes should’ve followed the original branding agreement more closely, or was this just a case of overreaction? Sound off in the comments and tell us who you think had the stronger case.