Matt Morgan has been hinting at joining WWE over the past couple of months on his Twitter, which has led to speculation that Morgan was sending the messages as a way to leverage a new, more lucrative deal with TNA.
According to a source, WWE was "absolutely interested" in signing Matt Morgan, who finished his commitments with TNA last month. However, the company will not sign anyone "fresh from TNA" with the current lawsuit against them. I was also told that as more time passes, interest typically fades like with Averno, however that is not necessarily currently the case with Morgan.
As for re-signing with TNA, a more lucrative new deal with TNA seems unlikely as Bruce Prichard is aggressively leveraging talent to take pay cuts, which is why several Knockouts have departed as of late. The cost cutting isn't consistent, so there might be a window "still slightly open" for Morgan to slide back into the TNA fold.
Morgan had wrestled for WWE from 2003-2004, before being injured and sent to OVW to gain more experience. He returned to WWE in 2005 and was given a "stuttering" gimmick, where he would be defensive about his speech disorder and destroy smaller wrestlers. The gimmick was done during a phase when Vince McMahon was arbitrarily assigning "characters" to talent (i.e. Paul Burchill as a pirate). Jim Ross was a major supporter of Morgan during that period.
As for the TNA - WWE lawsuit, the last hearing originally scheduled for July 13th has been rescheduled for this Thursday, August 2nd.