I remembered reading about how Daniel Pesina got canned for appearing as Johnny Cage in a Bloodstorm ad.

This made me remember that several actors sued Midway. I think it was Elizabeth Malecki (MK 1 Sonya), Philip Ahn (MK 2 Shang Tsung), Ho Sung Pak (MK 1 and 2 Liu Kang) and Katalin Zamiar (MK 2 Kitana and Mileena). They sued Midway for not being paid properly to act in the productions of Mortal Kombat 1 and 2.

Was this correct?

This also explained the new actors seen in MK 3- MKT for the characters they plated.