Controversies
In early 1998, Roy Jones, Jr. announced that he was relinquishing his WBC light heavyweight title. In response, the organization ordered a bout between German contender Graciano Rocchigiani and former champion Michael Nunn to fill the vacancy, sanctioning it as a world championship match.
On March 21, 1998 Rocchigiani won the fight and a WBC belt; in the subsequent WBC rankings, he was listed as "Light-Heavyweight World Champion." Jones, however, had a change of heart and asked if the WBC would reinstate him as the champion. In a move that violated nearly a dozen of its own regulations, the WBC granted the reinstatement. Rocchigiani received a letter from the WBC advising that the publishing of his name as champion was a typographical error, and he had never really been the official titleholder.
Rocchigiani immediately filed a lawsuit against the WBC in a U.S. federal court, claiming that the organization's actions both were contrary to their own rules and injurious to his earning potential (due to diminished professional stature). On May 7, 2003, the judge ruled in Rocchigiani's favor, awarding him $30 million (U.S.) in damages and reinstating him as a former WBC champion (Rocchigiani had lost a bout since his WBC title match).
The following day, the WBC sought protection by filing for Chapter 11 bankruptcy (i.e., corporate debt restructuring) in Puerto Rico. The organization then spent the next 13 months attempting to negotiate a six-figure settlement with Rocchigiani, but Rocchigiani did not at first accept.
On June 11, 2004, the WBC announced it would enter Chapter 7 bankruptcy liquidation (i.e., business closing and total asset sell-off) proceedings, effectively ending its existence. This action prompted some in the boxing community to plead with Rocchigiani to settle the dispute, which he did in mid-July 2004.
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