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Ballmer Seeks Dismissal of Leonard-Related Fraud Case

18.01.2026, 06:37

Ballmer’s Legal Team Fights Back

The legal battle involving Steve Ballmer, owner of the Los Angeles Clippers, has intensified. His attorneys have filed a motion to dismiss the lawsuit accusing him of participating in financial fraud tied to Kawhi Leonard‘s contract. The claims are labeled as “sensationalistic” and “manifestly unfounded.”

The Aspiration Collapse and Investor Lawsuit

The case centers on Aspiration, a green banking company that collapsed in March 2025. Investors allege that a series of investments and sponsorships were used to bypass NBA salary cap rules. The lawsuit, initially filed on July 9, 2025, by 11 investors, initially did not name Ballmer as a defendant.

Journalist Pablo Torre‘s investigations later implicated Ballmer, suggesting his investment in Aspiration was part of a scheme to make parallel payments to Leonard. On November 3, 2025, the investors amended their complaint to include Ballmer, claiming they were misled about the true nature of the operations.

The Leonard Connection

A sequence of agreements has drawn scrutiny. In September 2021, the Clippers and Aspiration announced a $300 million, 23-year partnership, including naming rights for the new Inglewood arena. That same month, Ballmer invested $50 million in Aspiration. By April 2022, Aspiration signed Leonard to a four-year, $28 million sponsorship deal. An anonymous former employee told Torre the deal was designed “to get around the salary cap.”

Ballmer’s Defense

Ballmer’s attorneys argue that the allegations are baseless, stating his name was added to the lawsuit as part of the investors’ attempt to recover funds. They claim Ballmer was also a victim of the fraud, losing his investment in Aspiration. The filing criticizes the media coverage, stating, “Unsupported conjecture and speculation may belong in a podcast, but not in a legal complaint.”

Ongoing Proceedings

The investors’ attorney, Skip Miller, remains defiant: “The facts speak for themselves and overwhelmingly support our claims. This case will be litigated in court, not in the press.”

Torre stands by his reporting, citing internal documents and testimony from former employees. Meanwhile, Joseph Sanberg, Aspiration’s co-founder, has pleaded guilty to two counts of wire fraud and faces sentencing on February 23, 2026.

A hearing on Ballmer’s motion to dismiss is scheduled for March 9, 2026, at the Los Angeles County Superior Court. The Clippers and Ballmer continue to deny any salary cap violations, stating they are cooperating with the NBA’s investigation.

Read also: Kawhi Leonard Scores 55, Harden Praises His Performance

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