A company owned by the Eastern Band of Cherokee Indians has sued Pro Football Hall of Famer Emmitt Smith and his business partners over a US$2.5 million loan for a proposed solar project in Texas.

Kituwah Energy Project #2 LLC, a wholly owned subsidiary of Kituwah LLC, filed the complaint on August 31 in Delaware's Court of Chancery. Kituwah LLC, based in Cherokee, North Carolina, is owned by the Eastern Band of Cherokee Indians and was formed in 2018 to develop businesses beyond gaming.

The case centres on Jabez 4 10 LLC, a joint venture in which the Kituwah subsidiary is the majority member alongside 4 13 Solutions, a company chaired by Smith. Smith is also a manager of Jabez. The September 2023 loan was meant to help secure rights to Project Exodus, a proposed solar development between Austin and San Antonio. According to the complaint, the venture required tribal ownership to qualify for a U.S. Department of Energy loan.

The complaint alleges that 4 13 Solutions instead used the $2.5 million to pay Wilson Holdings of North America, another member of the venture. It says a side letter made that payment conditional on permanent financing, which was never secured.

The loan carried 12 per cent annual interest and matured on February 1, 2024. Kituwah says it remains unpaid.

The lawsuit brings six counts against different defendants. It accuses 4 13 Solutions, Smith and business partner David Mosley of fraudulent inducement, and Smith, Mosley and Darrel Wilson of breach of fiduciary duty. Its breach-of-contract claims are directed at Wilson Holdings and Jabez, not Smith. Kituwah is seeking at least US$2.5 million in damages, plus interest, costs, expenses and legal fees. The allegations have not been tested in court.

Smith rejected the allegations in a statement to The Dallas Morning News. "But an unsuccessful business venture is not fraud," he said. "I intend to defend myself and my company against these allegations vigorously." He said the venture was undertaken in good faith and attributed its failure to changes in government policy, incentives and renewable-energy financing.

Smith won three Super Bowls with the Dallas Cowboys and retired as the NFL's career rushing leader, with 18,355 yards. He was inducted into the Pro Football Hall of Fame in 2010.

NFL legend Emmitt Smith sued by Cherokee investment firm over $2.5M loan