Palhares was then signed by the World Series of Fighting where he became the welterweight champion, rattling off three quick leglock submission wins in a row.
He then fought former Strikeforce middleweight champion Jake Shields and defeated the American grappler via controversial third round kimura submission. Palhares held the shoulder lock for too long and was also accused of repeatedly gouging Shields in the eyes before the stoppage.
The Brazilian was subsequently suspended for two years and issued a $40,000 fine by the Nevada State Athletic Commission for his actions as reported on by MMAjunkie:
Palhares (18-6) admitted responsibility for his actions but repeatedly took issue with those of the bout’s referee Steve Mazzagatti, claiming he was out of position and stopped the action after a danger was posed to Shields (31-8-1).
Palhares was not admonished for eye gouging Shields prior to the third-round stoppage despite a warning from Mazzagatti.
NSAC commissioner Francisco Aguilar called Palhares’ actions “almost an assault after the fact,” and yet commissioners shied away from a severe punishment. NSAC commissioner Pat Lundvall initially recommended between a two- or three-year suspension, but chair Anthony Marnell argued that Palhares had already been let go by the UFC for a similar infraction, and commissioner Raymond “Skip” Avansino pointed out that it was the Brazilian fighter’s first offense.
Shortly after the bout, Palhares was stripped of the title and indefinitely suspended by the WSOF, which strongly criticized his actions. Davis initially threatened legal action against the suspension, but both sides eventually agreed that a resolution would be found via the NSAC.
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