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WWE RESPONDS TO AMENDED MLW LAWSUIT, LISTS OVER A DOZEN POTENTIAL DEFENSES

By Mike Johnson on 2023-08-15 00:50:00

WWE filed an official response to the amended lawsuit Major League Wrestling brought against them yesterday before theUnited States District Court, Northern Division of California, San Jose.

As one might imagine, WWE completely denied any wrongdoing on their part.

The 25 page filing also listed a over a dozen potential defenses the company may bring forth against the lawsuit, noting:

"WWE asserts the following affirmative defenses on information and belief. In doing so, WWE does not assume any burden of proof, persuasion, or production on such defenses where such burden would otherwise fall on MLW. Additionally, WWE’s affirmative defenses are asserted in the alternative, and none of them constitute an admission of liability or that MLW is entitled to any relief.

First Defense

The First Amended Lawsuit (FAC) fails to state a claim upon which relief may be granted.

Second Defense

MLW’s claims are barred because MLW lacks antitrust injury or injury in fact.

Third Defense

MLW’s equitable claims are barred, in whole or in part, by the doctrines of unclean hands and in pari delicto.

Fourth Defense

MLW’s equitable claims are barred, in whole or in part, based on the doctrines of estoppel, laches, and waiver, as MLW’s claims are based, in part, on actions and events spanning decades.

Fifth Defense

MLW’s claims are barred, in whole or in part, because it does not have standing to raise those claims.

Sixth Defense

MLW’s claims are barred, in whole or in part, because WWE’s actions were authorized or permitted under state and/or federal law.

Seventh Defense

If and to the extent that MLW has been damaged, which WWE denies, MLW, by the exercise of reasonable diligence, could have mitigated its damages but did not and is therefore barred from recovery. Alternatively, any damages sustained by MLW, which WWE denies, must be reduced by the amount that such damages would have been reduced had MLW exercised reasonable diligence in mitigating its damages.

Eighth Defense

MLW’s claims are barred, in whole or in part, because, to the extent that MLW suffered any injury or incurred any damages as alleged in the FAC, which WWE denies, WWE’s alleged conduct was not the actual or proximate cause of any injury or damage to MLW.

Ninth Defense

MLW’s claims are barred, in whole or in part, because, to the extent that MLW suffered any injury or incurred any damages as alleged in the FAC, which WWE denies, any such injury or damage was caused and brought about by the acts, conduct, or omissions of individuals or entities other than WWE, and, as such, any recovery herein should be precluded or diminished in proportion to the amount of fault attributable to such other individuals or entities.

Tenth Defense

MLW’s claims are barred, in whole or in part, because, to the extent MLW suffered any injury or incurred any damages as alleged in the FAC, which WWE denies, any such injury or damage was caused and brought about by intervening or superseding events, factors, occurrences, conditions, or acts of others, including forces in the marketplace, and not by the alleged wrongful conduct on the part of WWE.

Eleventh Defense

MLW’s equitable claims are barred, in whole or in part, because any recovery would result in unjust enrichment to MLW.

Twelfth Defense

MLW’s claims for equitable relief are barred because MLW has an adequate remedy at law.

Fourteenth Defense

MLW’s claims are barred, in whole or in part, because WWE had legitimate business and/or economic justifications for the conduct at issue.

Reservation of Rights

WWE reserves the right to assert additional affirmative defenses as they become available. WWE has insufficient knowledge or information upon which to form a basis as to whether it may have additional, as yet unstated, separate defenses available. WWE reserves the right to amend this Answer to add, supplement, or modify defenses based on legal theories that may be or will be divulged through clarification, through discovery, or through further factual or legal analysis of MLW’s allegations, contentions, and positions in this litigation."

Back in March 2023, Major League Wrestling filed the amended lawsuit against WWE.  That suit, totaling 44 pages with an additional filing breaking down all the changes from the original January 2022 lawsuit filing, had been expanded to include MLW alleging "WWE’s predatory conduct further impeded MLW in its ability to compete in the licensing of its programming for distribution on streaming services and continues to threaten to deprive MLW of its ability to license its programming for distribution on cable.  As a result of WWE’s misconduct, MLW is at risk of its business being irreparably destroyed. In February 2023, MLW’s new media partner -- Reelz -- announced a distribution deal with streaming service Peacock. But as a direct result of WWE’s exclusivity arrangement with NBCUniversal, which prohibits any other professional wrestling programming on Peacock, MLW’s programming is excluded from this streaming deal, which further suppresses competition in the Relevant Market. MLW also is reportedly at risk of losing its cable deal with Reelz as a result of WWE’s exclusivity with Peacock."

MLW exited REELZ after 13 episodes, but REELZ later issued a statement to PWInsider.com that the two sides were in discussion about additional "seasons."  The belief upon MLW's REELZ debut was that the two sides had agreed to a multi-year deal but upon the announcement of the REELZ-Peacock alliance, the MLW series was downplayed greatly in comparison to its initial weeks on the cable broadcaster.  There has been no indication the two sides will resume any sort of relationship as of this writing.

MLW's Amended lawsuit alleged that WWE's exclusivity agreements (such as Peacock and NBC) create violations of the Sherman Antitrust Act as it pertains to the pro wrestling media market in the United States.  

MLW has argued since it first filed its first lawsuit that WWE was engaging in unfair practices, including attempting to prevent Ring of Honor (then owned by The Sinclair Broadcast Group) from running Madison Square Garden when allegedly Paul Levesque stepped in to stop it temporarily, that WWE prevented AEW from booking an Arena in Cincinnati several years back and that WWE went after signed MLW talents, including Davey Boy Smith Jr. and Swerve Strickland, neither of whom are currently with WWE.   

MLW has also maintained that WWE interfered with a MLW deal with FOX-owned streaming service Tubi, leading to that deal being canceled the night before it was to be announced and a potential deal with Vice TV, which only aired one original MLW special and several older MLW TV shows.

 

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