Shawne Merriman Fights Takeover After Loan Default

Lights Out Xtreme Fighting, founded by former NFL player Shawne Merriman in April 2019, is facing a significant ownership dispute. Applied Real Intelligence (ARI), an investment firm, acquired a majority interest in the company in January 2026. ARI subsequently appointed Dr. Zack Ellison as Chairman, President, and CEO. Merriman stated the announcement and his removal from the board were unexpected and described the situation as being 'strong armed.'

The core of the conflict stems from a $2.1 million loan secured by Lights Out in May 2024. The company reportedly missed three interest payments between October and December 2025, totaling approximately $50,000. According to court documents filed in Nevada, ARI's loan was secured by company assets, but Merriman's representatives argue that ARI lacked management or ownership rights.

Merriman's legal team filed a lawsuit on January 26, 2026, seeking to invalidate ARI's claimed control and disputing their actions, such as installing Ellison as a director and allegedly paving the path for equity conversion. ARI's attorneys countered that the company lawfully exercised control following Merriman's default on the loan, citing default-triggered proxies and warrant rights that led to their majority ownership. The legal back-and-forth has seen motions for case removal and remand, with ongoing filings regarding attorney fees and temporary restraining orders.