TNA Lawsuit Update: Billy Corgan Case May Involve Fraud, Tennessee Filed Tax Lien

TNA Lawsuit Updates: Billy Corgan Case May Involve Fraud, Tennessee Filed Tax Lien

The latest TNA lawsuit updates are anything but in favor of the struggling company. According to a new report, the lawsuit filed earlier this week by company president Billy Corgan may involve some fraud on the part of Chairwoman/majority owner Dixie Carter. And TNA may be in more trouble with the state of Tennessee, which reportedly filed a lien against the promotion in September.

Before we move on to the new legal updates, let’s take a look at what we know so far about TNA’s lawsuit situation. On Wednesday, Corgan sued the company, its majority owner and Chairwoman Dixie Carter and her husband Serg Salinas, TNA parent Impact Ventures LLC, and the company’s CFO Dean Broadhead. Corgan, who also fronts alternative rock giants Smashing Pumpkins, did not give comment on the exact reasons why he filed suit against the promotion and had also requested all legal documents to be sealed. But a New York Post report cited a source close to Corgan who says he was unhappy about not getting the majority stake in TNA that he was promised.

That isn’t the only legal hurdle currently being faced by TNA. Lawsuit number two was actually filed a few weeks beforehand, but just one day after news of the Billy Corgan case had emerged, several publications reported that TNA’s former production firm, Audience of One Productions, had also sued the company.

The Inquisitr reported Friday that AO1 is seeking an unpaid debt of $223,000 plus interest and post-judgment costs for its involvement in the production of last year’s Bound for Glory pay-per-view. On top of that, it was also revealed in the suit that TNA owes a few other companies, including minority owner Aroluxe, Anthem Sports and Entertainment, and MCC Acquisition, the latter of which is believed to have funded this year’s Bound for Glory PPV and the TV tapings that followed.

Now it would appear that Billy Corgan’s TNA lawsuit may involve more than just unpaid debts from Dixie Carter and Impact Ventures. Quoted in a report by SEScoops, the Wrestling Observer Newsletter‘s Dave Meltzer said that there may be fraud involved in that particular case, on top of the money allegedly owed by Carter.

“(The case involved Corgan) not being told of certain financial things and information withheld by Dixie Carter to Corgan that he should have known,” said Meltzer on the latest Wrestling Observer Radio.

Separate from the issues with Corgan, AO1, and the other companies TNA supposedly owes, the state of Tennessee has also come chasing after the beleaguered wrestling promotion. Another report from SEScoops confirmed that the state’s Department of Revenue filed a tax lien against the company, and while the amount of the debt is still unknown, it is apparently quite a large amount and one that could seriously harm TNA’s chances of staying afloat.

“Essentially, what this means is that TNA owes a lot of taxes to the state of Tennessee, to the point that the state now has the right to seize TNA property if the debt is not repaid.”

Could we be seeing what, as “Broken” Matt Hardy would call it, the “final deletion,” or the end of TNA? Even now, it’s still too early to leave the company for dead, but the signs of impending doom are certainly adding up. Apart from the Tennessee tax lien looking like a potential catastrophe if not paid, and the new update on the Corgan/Dixie situation, there have also been rumors (c/o WrestleZone, via Dave Meltzer) that some of TNA’s wrestlers may declare themselves free agents if they don’t get paid. Not having ring music due to rights issues is one thing, but not getting paid on time, naturally, compromises one’s livelihood.

This almost certainly won’t be the last we’ll hear about TNA and lawsuit updates. But for now, it’s looking harder and harder to stay optimistic about the company’s future prospects.

[Featured Image by Michael Loccisano/Getty Images]

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