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Emmitt Smith sued in $2.5M fraud claim

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A Native American development group is suing Pro Football Hall of Famer Emmitt Smith and his company, alleging it was defrauded out of $2.5 million as part of a deal to purchase a solar farm, according to court documents. The filing, posted on Courthouse News and filed in the Delaware Court of Chancery, alleges that Smith, the chairman of 4 13 Solutions, and company CEO David Mosley committed fraudulent inducement and breach of fiduciary duty by promising to use a $2.5 million loan from Kituwah LLC to obtain an interest in Project Exodus, a solar farm project in Texas.

Instead, the lawsuit claims, Smith, Mosley and 4 13 Solutions used the money to pay a third company, Wilson Holdings, as "compensation for prior unsuccessful loans and investments that it made with 4 13 Solutions." The contract between 4 13 and Kituwah said Wilson Holdings would be paid only if the project received long-term financing from the Department of Energy for acquiring and operating Project Exodus. According to the lawsuit, long-term financing was not secured and the money was used to pay Wilson Holdings instead of purchasing Project Exodus.

The filing, which lists Smith, Mosley, 4 13 Solutions, Wilson Holdings and its owner, Darrel Wilson, as defendants, claims the transaction was "essentially, like a Ponzi scheme." According to the lawsuit, Wilson told Kituwah attorneys that he did not know what triggered his company to receive the $2.5 million payment but that he did not believe permanent financing had been secured. Andrew Moore, one of Kituwah's attorneys, declined comment to ESPN on Tuesday.

Kituwah and 4 13 began speaking about Project Exodus in early 2023, with expectations it would be operational by the end of 2024. They created a separate company -- Jabez 4 10 -- for the venture and planned on applying for the Department of Energy loan available to Native American tribes. The lawsuit alleges 4 13 Solutions sent updates about the loan application throughout summer 2023, including an alternative financing option. Kituwah claims it tried to reach a solution throughout 2025 but 4 13 Solutions ignored its inquiries, leading to the lawsuit.