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Aaron Goodwin nd Eric Goodwin have sued Gordon Rees Scully Mansukhani for more than $92 million in damages, alleging the law firm and two of its former partners conspired in a fraud scheme over the sale of their enterprises.
In the complaint, they claimed the San Francisco-based firm helped to commit “a brazen bait-and-switch fraud to mislead the Goodwins into selling their thriving sports management business.”
Goodwin represents Damian Lillard and DeMar DeRozan amongst many other NBA players. Goodwin also represented LeBron James and Kevin Durant early in their careers.
The Goodwins’ 61-page lawsuit details a series of bids for their businesses, including the final one, when Gordon Rees client Decade S.A.C. LLC closed a deal in 2016 to purchase the Goodwins’ businesses for $35 million.
Decade, which would later file for bankruptcy, has failed to pay more than $25 million owed to the Goodwin brothers, according to the lawsuit. The Goodwins’ lawsuit, which seeks lost profits from player salary and endorsement contracts, alleged Decade’s fraud scheme “unraveled” amid loan defaults and bankruptcy proceedings.