Lights Out Enterprises Seeks Sanctions Against Applied Real Intelligence

Lawsuit alleges A.R.I. is concealing identities of its limited partners

Published on Mar. 1, 2026

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Lights Out Enterprises has filed a motion for sanctions against Applied Real Intelligence (A.R.I.), alleging that the company has refused to disclose the identities of its limited partners as required by federal law. Lights Out Enterprises originally filed the lawsuit in state court to undo what it claims is the wrongful takeover of its business by a lender with no experience in promoting MMA events. The case was then improperly removed to federal court, prompting Lights Out Enterprises to also file for a temporary restraining order.

Why it matters

This case highlights the importance of transparency and accountability in business dealings, especially when it comes to the ownership structure of companies involved in legal disputes. Lights Out Enterprises is seeking to uncover the identities of A.R.I.'s limited partners, which it believes is crucial information for the court to have in order to properly adjudicate the case.

The details

Lights Out Enterprises filed the motion for sanctions after A.R.I. stated its unwillingness to disclose the identities of its limited partners. The company argues that this information is required by federal law, and that A.R.I.'s refusal to provide it is an attempt to delay the proceedings. Lights Out Enterprises is also seeking to recover attorneys' fees and costs associated with what it claims was an improper removal of the case to federal court.

  • The lawsuit was originally filed in state court on February 20, 2026.
  • The case was then removed to federal court, prompting Lights Out Enterprises to file for a temporary restraining order.

The players

Lights Out Enterprises

A company founded by Shawne Merriman that is seeking to undo what it alleges is the wrongful takeover of its business by a lender with no experience in promoting MMA events.

Applied Real Intelligence (A.R.I.)

The lender that Lights Out Enterprises claims has improperly taken over its business, and which is now refusing to disclose the identities of its limited partners as required by federal law.

Zachary Ellison

The general partner of A.R.I. Senior Secured Growth, a limited partnership that is part of A.R.I.

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What they’re saying

“Transparency and accountability matter. We filed in state court and were prepared to litigate there. When the case was moved to federal court, we immediately filed there. We remain prepared to proceed wherever the Court determines the matter belongs.”

— Shawne Merriman, Founder, Lights Out Enterprises (PRNewswire)

What’s next

The federal court will decide whether to grant Lights Out Enterprises' motion for sanctions and order A.R.I. to disclose the identities of its limited partners.

The takeaway

This case highlights the importance of transparency in business dealings, especially when it comes to the ownership structure of companies involved in legal disputes. Lights Out Enterprises is seeking to uncover information that it believes is crucial for the court to properly adjudicate the case, and its pursuit of sanctions against A.R.I. for refusing to provide this information underscores the company's commitment to accountability.