A recent report has provided a major update on a lawsuit filed against Cody Rhodes and WWE. The defendants have also been asked to pay a hefty amount after an alleged breach of contract.Popular musician Wesley Eisold of 'American Nightmare,' a hard rock band, recently filed a trademark lawsuit against Cody Rhodes, World Wrestling Entertainment, and Fanatics over The American Nightmare moniker.For those unaware, Rhodes filed for 'The American Nightmare' trademark in 2019, but Eisold opposed it as he had already owned the name since 2016. Later, they reached an agreement where Cody was allowed to use the moniker on his merchandise, but his name should be visible on it and should be 75% or larger than 'American Nightmare.' The Undisputed WWE Champion also paid $30,000 to the musician at that time. View this post on Instagram Instagram PostWesley Eisold recently filed a trademark lawsuit against Cody Rhodes, WWE, and Fanatics, alleging that they did not stick to the agreement. Eisold is also looking for a jury trial, alleging that Rhodes committed a breach of contract and a judgment against WWE and Fanatics for inducement of breach of contract. The musician also wants $900,000 in damages.According to the latest report by PWInsider, Eisold needs to file a response to the defendants after the Stamford-based promotion tried to get the case dismissed by September 12, 2025. World Wrestling Entertainment, Rhodes, and Fanatics now need to reply by September 26. The report also highlighted that a court hearing is scheduled for October 10 for the motion to dismiss filed by WWE at 10 AM, and a conference related to the scheduling of the case will be held on October 31, 2025.Cody Rhodes is set to return to WWE at WrestlepaloozaAfter getting assaulted by Drew McIntyre on the August 8, 2025, edition of SmackDown, Cody Rhodes went on a hiatus. Several reports suggested that The American Nightmare was taking time off for his projects outside the Stamford-based promotion, including the Street Fighter movie.The American Nightmare was rumored to return to action at Wrestlepalooza. World Wrestling Entertainment's Chief Content Officer, Triple H, has now confirmed that Rhodes is indeed returning at the upcoming premium live event. He will most probably go one-on-one against The Scottish Warrior at the event.It remains to be seen what the Stamford-based promotion has planned for Cody Rhodes at Wrestlepalooza.