Los Angeles Clippers owner Steve Ballmer is facing a lawsuit filed by 11 former Aspiration investors, who claim the company was used to pay All-Star forward Kawhi Leonard in a manner that circumvented the NBA salary cap.
The amended lawsuit, initially filed in July, was subsequently filed in the California Superior Court and obtained by USA TODAY Sports, adding Ballmer’s name as a defendant. Aspiration, whose name is now Catona, claims the former Microsoft executive used the company “to secretly funnel millions of dollars to star NBA player, Kawhi Leonard.”
The lawsuit also said that “Ballmer was complicit in and aided and abetted (co-founder Joe) Sanberg’s fraud for his own self-serving purpose.’
‘It served Ballmer’s interest in getting extra money to Leonard so he could circumvent the salary cap, beat out the competition and re-sign his team’s superstar player,’ the lawsuit said. ‘Ballmer was complicit in and aided and abetted Sanberg’s fraud for his own self-serving purpose. Ballmer publicly endorsed Catona and infused over $50 million into the company. Absent Ballmer’s support, Catona could not have sustained the frauds set forth herein.’
The NBA is investigating the Clippers and Aspiration, and Commissioner Adam Silver said last month that there is no timetable for the probe to reach a conclusion and that the All-Star Game, slated to be played at the Intuit Dome in Los Angeles on Feb. 15, will proceed.
‘There’s no contemplation of moving the All-Star Game, and planning for the All-Star Game and the surrounding activities are operating completely independently of the ongoing investigation,’ Silver said.
Ballmer has repeatedly denied any wrongdoing, claiming he was ‘duped,’ and during an interview with ESPN in September, claimed that he was unaware of the court documents that had originally linked Aspiration to Leonard, who was reportedly paid upwards of $30 million by Aspiration for a no-show job.
‘Plaintiffs allege that Ballmer transferred other funds to (Aspiration) to keep the company afloat and buy Sanberg’s support, cooperation and silence about the secret deal with Leonard. The full extent of Ballmer’s transfers of funds to (Aspiration) and Sanberg will be ascertained in discovery,’ the lawsuit said.