Zion Williamson, Family Being Sued By Tech Company For Allegedly Missing Loan Payments
New Orleans star Zion Williamson and his family are being sued for $1.8 Million by a tech company for allegedly defaulting on a loan, the Associated Press reports.
According to the lawsuit, Williamson’s mother and step-father failed to make payments on a loan that was given to them by Ankr PBC, a California-based company that specializes in blockchain-related technologies which is used in finance and data storage. The company claims that the loan was made in September 2021 with the hopes that the basketball star would be a spokesperson for the business.
The lawsuit also claims that Lee Anderson, Williamson’s stepfather and business manager demanded a payment of $150,000 to establish the business relationship.
“Based on Williamson’s statements to Ankr, Ankr reasonably believed that Anderson possessed the authority to negotiate business arrangements for Williamson,” the lawsuit states.
Sharonda Sampson, Williamson’s mother, is also a defendant in the suit because Ankr transferred funds to her account after Anderson reportedly informed the company that “his family urgently needed a “bridge loan” to cover investment obligations.”
“Anderson represented that the loan was urgently needed, as the family had taken on expensive investments including the purchase of certain real estate in New Orleans, and could not meet their obligations due to the temporary suspension of payments from Williamson’s sponsorship deals resulting from an injury,” the lawsuit stated.
The suit also alleges that Anderson told Ankr that if the loan was made immediately “his family would suffer financial hardship, and Williamson would not enter into a business relationship with Ankr.”
The company claimed that the loan was made only with the intention that Anderson would be paid back by Aug. 21, 2022, but he subsequently asked for several extensions. When Ankr received a check for $25,000 from Andersson, it was rejected for insufficient funds.
Ankr and Anderson entered into a forbearance agreement last April in which the “company agreed not to sue if it received repayment of $500,000 by April 25 and the remainder by July 6,” the lawsuit stated.
According to the suit, Anderson made an on-time payment of $500,000 on time, but around $300,000 of it went to interest. About $1.8 million is still outstanding, which led Ankr to file the lawsuit.
Although his career has been hampered by injuries, Williamson’s potential on the court has been undeniable as he’s averaged 25.8 points per game and is a two-time All-Star.
Last summer, Williamson signed a five-year rookie maximum extension worth $193 million plus incentives that begins in the 2023-24 season.