LIGHTS OUT® ENTERPRISES OWNER SHAWNE MERRIMAN FILES LAWSUIT AGAINST ZACK ELLISON’S APPLIED REAL INTELLIGENCE, SEEKING IN
LAS VEGAS, NV, UNITED STATES, February 4, 2026 /EINPresswire.com/ -- Shawne Merriman, founder and CEO of Lights Out Enterprises® has filed a lawsuit seeking a Temporary Restraining Order (TRO) to stop completely unauthorized actions taken by Zack Ellison and his company Applied Real Intelligence (A.R.I.) and a linked #venture credit fund following a lending dispute (Case # A-26-937793-C). The Complaint, in Clark County Nevada District Court, alleges that A.R.I. attempted to assert control over Lights Out Enterprises® — including public claims of management authority — without completing a lawful foreclosure process or obtaining court approval.
According to the Complaint, the defendant company and venture credit fund owned by Ellison (A.R.I. Senior Secured Growth Credit Fund, LP) allegedly tried to wrongfully take over Lights Out Enterprises® by removing Merriman, amending the company’s certificate of incorporation and installing Ellison as the sole firm Director. The suit alleges that the defendants and General Managing Partner Ellison began “holding themselves out to employees and third parties as controlling management of the Company, directing employees to report to them and issuing public statements announcing a change in leadership.” These actions caused significant and irreparable harm and confusion among sponsors partners, employees, and others, as detailed in the Complaint.
The lawsuit stems from a disputed default over a loan venture credit fund A.R.I made to Lights Out Enterprises®. Merriman made continual efforts to repay the debt. The valuation of the company and its intellectual property vastly exceeds the amount of the alleged debt, as noted in the filing. It states, “The proxy and attorney-in-fact provisions in the Loan Agreement are security devices intended to protect collateral value, not grants of managerial authority or ownership rights.”
Shawne Merriman earned the nickname “Lights Out” during his long and legendary football career, which included being a valued player for the Buffalo Bills and San Diego Chargers. He subsequently built that name and reputation into the nationally recognized and trademarked brand “Lights Out”®. A key subset of that brand is Lights Out XF® a successful mixed martial arts (MMA) operation which has included over 29 events and 180 live-streamed fights.
In 2024, Lights Out XF® Inc. and A.R.I. entered into a Loan and Security Agreement. A.R.I. alleges that Lights Out® did not make timely interest payments from October-December 2025. In order to pay said alleged debt, Merriman negotiated with A.R.I. in good faith. However - after some back and forth communications - on January 2, 2026, A.R.I. notified Merriman and Lights Out® of a default. This caused Merriman to file this action to retain control of the enterprise he founded. The action notes, “The loan agreement does not authorize Defendants to operate the Company, act as officers, displace management or appropriate governance absent lawful foreclosure or court supervision.”
Plaintiff seeks a TRO and preliminary injunction against Ellison’s company and venture credit fund noting: “No privilege or justification for Lender’s conduct exists. Lender’s conduct was …(committed) with … disregard to the rights of Plaintiff and Lights Out® .”
The suit requests damages over $1 million as well as attorney fees. Merriman is represented by Ross Goodman, Goodman Law Group P.C. 520 S. Fourth Street, Las Vegas Nevada 89101 ross@goodmanlawgroup.com.
According to the Complaint, the defendant company and venture credit fund owned by Ellison (A.R.I. Senior Secured Growth Credit Fund, LP) allegedly tried to wrongfully take over Lights Out Enterprises® by removing Merriman, amending the company’s certificate of incorporation and installing Ellison as the sole firm Director. The suit alleges that the defendants and General Managing Partner Ellison began “holding themselves out to employees and third parties as controlling management of the Company, directing employees to report to them and issuing public statements announcing a change in leadership.” These actions caused significant and irreparable harm and confusion among sponsors partners, employees, and others, as detailed in the Complaint.
The lawsuit stems from a disputed default over a loan venture credit fund A.R.I made to Lights Out Enterprises®. Merriman made continual efforts to repay the debt. The valuation of the company and its intellectual property vastly exceeds the amount of the alleged debt, as noted in the filing. It states, “The proxy and attorney-in-fact provisions in the Loan Agreement are security devices intended to protect collateral value, not grants of managerial authority or ownership rights.”
Shawne Merriman earned the nickname “Lights Out” during his long and legendary football career, which included being a valued player for the Buffalo Bills and San Diego Chargers. He subsequently built that name and reputation into the nationally recognized and trademarked brand “Lights Out”®. A key subset of that brand is Lights Out XF® a successful mixed martial arts (MMA) operation which has included over 29 events and 180 live-streamed fights.
In 2024, Lights Out XF® Inc. and A.R.I. entered into a Loan and Security Agreement. A.R.I. alleges that Lights Out® did not make timely interest payments from October-December 2025. In order to pay said alleged debt, Merriman negotiated with A.R.I. in good faith. However - after some back and forth communications - on January 2, 2026, A.R.I. notified Merriman and Lights Out® of a default. This caused Merriman to file this action to retain control of the enterprise he founded. The action notes, “The loan agreement does not authorize Defendants to operate the Company, act as officers, displace management or appropriate governance absent lawful foreclosure or court supervision.”
Plaintiff seeks a TRO and preliminary injunction against Ellison’s company and venture credit fund noting: “No privilege or justification for Lender’s conduct exists. Lender’s conduct was …(committed) with … disregard to the rights of Plaintiff and Lights Out® .”
The suit requests damages over $1 million as well as attorney fees. Merriman is represented by Ross Goodman, Goodman Law Group P.C. 520 S. Fourth Street, Las Vegas Nevada 89101 ross@goodmanlawgroup.com.
Nancy Sterling
ML Strategies, LLC
+1 617-348-1811
njsterling@mlstrategies.com
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