Emmitt Smith faces legal dispute over solar project
Emmitt Smith is facing a lawsuit tied to a proposed Texas solar project, with millions of dollars at the center of the dispute. The complaint raises questions about where the money went, what was promised to investors, and what happened when repayment was due.
As more details emerge, the allegations paint a complicated picture involving business partners, financing and a project that never reached its expected finish line.
Kituwah says $2.5 million was loaned
Kituwah Energy Project #2 LLC provided a $2.5 million secured loan to Jabez 4 10 LLC in September 2023, according to the complaint. Kituwah is affiliated with the Eastern Band of Cherokee Indians and serves its economic development interests.
The complaint says the loan was intended to help acquire interests in Project Exodus, a proposed solar and battery-storage development in Texas. Repayment was due Feb. 1, 2024.
Project Exodus was the proposed venture
Project Exodus was presented as a utility-scale solar and battery storage project in Caldwell County, Texas. The location is between Austin and San Antonio, according to reporting on the lawsuit.
The complaint says the project was expected to begin operations by the end of 2024. Its financial materials projected nearly $13.8 million in first-year net income if development proceeded as planned.
Smith co-founded 4 13 Solutions
Smith and Mosley co-founded 4 13 Solutions, an energy solutions and commercial real estate platform. The company was involved in presenting Project Exodus to Kituwah, according to the lawsuit.
Kituwah alleges the defendants described a path toward permanent financing and ownership of the project. The complaint also says Smith and Mosley participated in discussions that led to the $2.5 million loan.
The loan carried 12% annual interest
The $2.5 million loan carried an annual interest rate of 12%, according to the complaint. Kituwah says the repayment deadline was Feb. 1, 2024, but the principal was not repaid.
About $600,000 in interest had accrued on the loan by the time the lawsuit was filed, according to reporting on the case. Kituwah is seeking the loan amount, interest, costs, expenses and additional damages.
Kituwah alleges the money went elsewhere
A central allegation concerns how the $2.5 million was used after the loan was funded. Kituwah says it was told the money would support acquiring Project Exodus interests from Genesis Consolidated Industries.
The complaint instead alleges that 4 13 Solutions used the money to pay Wilson Holdings. Kituwah says Wilson Holdings had previously provided funding connected to ventures involving Smith and his business partners.
Permanent financing was allegedly required
The lawsuit says Wilson Holdings was entitled to receive $2.5 million under a separate side agreement. That payment was allegedly conditioned on Jabez 4 10 obtaining permanent financing for Project Exodus.
Kituwah alleges the financing was never secured. The complaint says Darrel Wilson told Kituwah’s attorneys that he did not believe permanent financing had been received and did not know what triggered the payment.
Kituwah says promised interests were not transferred
Kituwah alleges that the promised project interests were never transferred to the joint venture. It also says the expected permanent financing was never completed.
The complaint further alleges that Kituwah lacked meaningful control over the joint venture and did not have adequate visibility into its finances. Kituwah says the solar development also failed to make meaningful progress toward completion.
The complaint alleges misleading representations
Kituwah accuses Smith, Mosley, and others of making false or misleading statements before the investment. The allegations include claims about project progress, other investors, financing plans, projected income, and the operating date.
Kituwah says those representations influenced its decision to provide the $2.5 million loan. The lawsuit asserts fraudulent inducement, breach of fiduciary duty, and breach of contract.
Kituwah compares the alleged conduct to a Ponzi scheme
The complaint uses the phrase “essentially, like a Ponzi scheme” to describe the alleged movement of the money. Kituwah says funds raised for Project Exodus were instead used to pay an earlier obligation.
That description is an allegation by the plaintiff, not a court finding. The lawsuit asks the Delaware Court of Chancery to award damages and other relief based on the claims asserted in the case.
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The loan remained unpaid after repeated demands
Kituwah says it repeatedly sought repayment after the loan became due in February 2024. The complaint alleges that the defendants provided explanations about delays but did not repay the principal.
Kituwah says it investigated the transaction and filed suit after efforts to recover the money failed. The company alleges it has not recovered the principal and is seeking interest, costs, expenses, and additional damages through the lawsuit.
Interesting fact: Emmitt Smith remains the NFL’s all-time leading rusher. He finished his career with 18,355 rushing yards and 164 rushing touchdowns, records that continue to define his place in league history.
Kituwah is seeking more than the principal
The lawsuit seeks at least $2.5 million in damages from the defendants. Kituwah also requests interest, attorneys’ fees, investigative expenses, legal costs, and other relief that the court may award.
Front Office Sports reported that nearly $600,000 in interest had accrued on the loan, putting the claimed balance above $3 million. The exact amount recoverable will depend on the court’s decisions in the case.
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Smith’s response had not been reported
As the lawsuit became public, news outlets reported that representatives for Smith and the other defendants had not immediately provided a response. The case remains at the allegation stage.
Smith is a three-time Super Bowl champion and Pro Football Hall of Fame running back. He retired after the 2004 season with 18,355 career rushing yards and was inducted into the Hall of Fame in 2010.
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What do you make of the allegations? Like this post and comment with your thoughts.
This slideshow was made with AI assistance and human editing.
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