Chris Jericho Explains WWE’s No-Settlement Lawsuit Policy

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Chris Jericho recently claimed that WWE operated under a deliberate no-settlement policy when it came to lawsuits, a calculated deterrent strategy designed to discourage frivolous claims.

The longtime wrestler said that the company treated settling even a single weak case as a slippery slope that could invite a wave of opportunistic litigation.

Jericho shared an inside look at WWE’s legal philosophy while speaking on Talk Is Jericho. He explained that during his time with the promotion, refusing to settle out of court was a firm rule.

"People will sue for anything. I know when I worked for WWE, one of the rules was we will not settle out of court for any lawsuit, right?” Jericho said.

The thinking, as Jericho described it, was that paying out on one claim would signal weakness and encourage others to come looking for a quick payday. He said the company would rather absorb the higher cost of fighting a case than hand out a smaller settlement.

Jericho laid out the math behind the approach, framing settlements as an open door the company refused to walk through.

"Because if you settle for one, then everybody’s going to start breaking through. They would rather pay, you know, $30,000 than give out 10 because if you give out 10, then everyone for the low-hanging fruit is going to start trying to get involved,” Jericho explained.

The takeaway is straightforward. Even when fighting a case cost more upfront, WWE saw it as the better long-term play than signaling it could be shaken down for easy money.

Jericho has spoken at length about his WWE years and the personalities behind the scenes, including Vince McMahon’s initial dislike of Bryan Danielson and his own brushes with real-world litigation, such as being sued by Larry Zbyszko over a t-shirt.