WILMINGTON, Del., April 25, 2018 /PRNewswire/ -- Principals in Sport Trinity LLC, the largest investor in BIG3 Basketball, LLC, today filed a motion for the removal to the Federal Court in Los Angeles of the civil action previously brought in the California State Court by individuals Jeff Kwatinetz and O'Shea Jackson, Sr (a/k/a Ice Cube), and which also includes as a plaintiff the league itself.
Attached to the motion filed with the court is a demand on behalf of Sport Trinity for inspection of the books and records of BIG3 Basketball LLC, which asserts among other wrongdoings the following:
- League co-founders, Kwatinetz and Jackson, deceived Sport Trinity from the outset of its investment, both before and after the Closing Date, about BIG3's finances, leadership and corporate governance.
- Kwatinetz and the other plaintiffs did not disclose material contracts prior to Sport Trinity's investment, which included third party transactions involving businesses operated by Kwatinetz and Ice Cube.
- Kwatinetz and Ice Cube have subsequently engaged in a public smear campaign, making unfounded and defamatory remarks about investors and departing executives, all to the detriment of the BIG3.
Among the alleged wrongdoings about which Sport Trinity is seeking information are allegations of improper conduct by Kwatinetz that is detrimental to the Company -- including allegations that Kwatinetz commingles Company funds and, without Board approval, unilaterally authorizes related-party transactions involving other companies under his control; makes use of private jets that are expensed to BIG3's accounts and Company credit cards; and has engaged in erratic behavior detrimental to BIG3.
The letter outlines a series of deceits, misrepresentations, and mismanagement by Kwatinetz leading up to and during the time that Sport Trinity has been the BIG3's largest investor.
Attached to this release is the Demand for Inspection letter, which will be addressed in a separate arbitration proceeding.
The case number is 2:18-cv-03466.
Kekst and Company
917 842 1594
SOURCE Sport Trinity LLC