Advertisement

Manny Pacquiao shakes off million-dollar lawsuit

MACAU - NOVEMBER 24: Manny Pacquiao of the Philippines walks into the ring before his bout with Brandon Rios of the U.S. during their 'Clash in Cotai' WBO International Welterweight title fight on November 24, 2013 in Macau. (Photo by Nicky Loh/Getty Images)

After a spate of issues regarding his taxes, Manny Pacquiao got a much-needed break as a lawsuit filed against him in the United States was thrown out.

Pacquiao received a belated birthday gift as the United States Court of Appeal for the Fifth Circuit affirmed the dismissal of a multi-million dollar lawsuit against the boxer.

Imperial ED Promotions, a startup Texas promotional company, filed the lawsuit which was dismissed last December 18. The company argued that Pacquiao failed to show up for a promotional event in 2010. However, Pacquiao’s team of lawyers led by David Marroso of law firm O’Melveny and Myers LLP countered that Pacquiao was not paid the agreed upon fee prior to the event.

The case was ultimately dismissed because Imperial ED Promotions committed a serious blunder when they submitted a tampered document. Pacquiao’s counsel made the argument that Imperial ED Promotions should not be the party filling the lawsuit since the earlier contract was signed with someone else. The tampered documented was apparently backdated to make it seem that Pacquiao signed the contract with Imperial RD Promotions.

ALSO READ: IRS chasing Pacquiao

“As Manny’s popularity increased, he has become a target,” observed Marroso. “People file meritless lawsuits against Manny hoping cash in on his success. Pacquiao hopes the Court’s decision will cause future plaintiffs to pause before filing frivolous lawsuits and trying to cheat the system.”

In 2010, Pacquiao was contracted to show up, take pictures, and sign autographs in Texas months prior his fight against Antonio Margarito in Arlington. Pacquiao won that  fight by clobbering Margarito and winning via unanimous decision. The win also made Pacquiao boxing’s one and only eight-division word champion.

ALSO READ: Manny Pacquiao meets P-Noy for courtesy call, both camps mum on tax issues

Pacquiao advisor Michael Koncz added that “Manny took a stand in this case and vowed to fight until his name was cleared.”

With one issue settled, Pacquiao will now have to face twin tax issues both in the Unites States and in the Philippines. The Philippines Bureau on Internal Revenue has issued a garnishment on Pacquiao’s bank accounts in the Philippines while the Internal Revenue Service of the United States has issued a leal on his belongings.