# Lawsuit against Emmitt Smith regarding loan misappropriation > Live situation record from CLSTR: https://clstr.news/situations/lawsuit-against-emmitt-smith-regarding-loan-misappropriation > Updated: 2026-09-04T23:21:54.000Z. Sources: 12. Developments: 2. NFL Hall of Famer Emmitt Smith and business partner David Mosley are facing a lawsuit in Delaware’s Chancery Court filed by Kituwah LLC, the economic development arm of the Eastern Band of Cherokee Indians. The lawsuit alleges that Smith and Mosley, through their firm 4 13 Solutions Inc., misappropriated a $2.5 million loan provided in 2023. While the funds were intended for ‘Project Exodus’—a renewable energy venture involving solar or wind projects in Texas—the plaintiffs claim the money was instead used to improperly repay a different company, Wilson Holdings. Attorneys for Kituwah LLC have described the alleged diversion of funds as being ‘essentially, like a Ponzi scheme.’ The complaint further alleges that the defendants misrepresented their progress in securing a U.S. Department of Energy loan and eventually ceased communication. Kituwah LLC is seeking the return of the principal amount, approximately $600,000 in accrued interest, legal fees, and additional damages. ## Timeline ### 2026-09-04: Emmitt Smith sued over alleged misappropriation of wind farm loan Emmitt Smith and partner David Mosley are being sued by Kituwah LLC for allegedly misappropriating a $2.5 million loan intended for a Texas wind farm project. 4 sources. https://clstr.news/cluster/emmitt-smith-sued-over-alleged-misappropriation-of-wind-farm-loan ### 2026-09-01: Emmitt Smith accused of defrauding Native American investor NFL legend Emmitt Smith and his partners are accused in a Delaware lawsuit of defrauding the Eastern Band of Cherokee Indians of $2.5 million intended for a solar energy project. 9 sources. https://clstr.news/cluster/emmitt-smith-accused-of-defrauding-native-american-investor --- Cite as: Lawsuit against Emmitt Smith regarding loan misappropriation. CLSTR, https://clstr.news/situations/lawsuit-against-emmitt-smith-regarding-loan-misappropriation