Dallas Cowboys legend Emmitt Smith faces a civil lawsuit in Delaware, where Kituwah LLC is seeking $2.5 million. The suit also names his business partner, CEO David Mosley, and their companies, 4 13 Solutions Inc. and Wilson Holdings of North America LLC.
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Smith has now strongly denied the accusations, describing the project as an unsuccessful business venture rather than fraud.
“Ultimately, the project could not be completed,” Smith said in a statement to The Dallas Morning News on Tuesday. “That outcome was a loss for everyone involved. It was an unsuccessful business venture. To be clear, I strongly reject any suggestion that I knowingly deceived Kituwah or engaged in misconduct.”
According to the lawsuit, Kituwah entered into business partnerships with Smith and Mosley in September 2023. The company, which serves as the investment and economic development arm of the Eastern Band of Cherokee Indians, says it provided $2.5 million to help fund Project Exodus, a renewable-energy project in Texas between Austin and San Antonio.
Kituwah alleges that 4 13 Solutions instead used the money to pay Wilson Holdings, which had previously provided funding to Smith’s company. The lawsuit claims Wilson Holdings was only supposed to receive repayment if Project Exodus secured permanent financing.
The complaint alleges that the condition never occurred, yet the $2.5 million payment was still made.
Kituwah further claims that Smith and Mosley said the money had been used for the intended project, but the solar development failed to make the promised progress. The company says the loan was due to be repaid by February 1, 2024, but it has not recovered any of the principal.
The lawsuit also alleges that Smith and his partners made assurances about the project’s value, potential revenue, and chances of securing government-backed financing. Kituwah said Project Exodus was valued at $396 million and could generate nearly $14 million in net income during its first year.
Smith disputed the suggestion that he knowingly misled Kituwah. He said the venture was launched in good faith during a period when federal incentives and financing opportunities were supporting renewable-energy projects.
“We entered this venture in good faith, believed in the opportunity and worked to make it successful,” Smith said. “I understand that Kituwah is disappointed with the outcome. We are disappointed, too. But an unsuccessful business venture is not fraud. I intend to defend myself and my company against these allegations vigorously.”
Smith also pointed to changes in the renewable-energy financing environment, saying government policy, incentives, and the availability of financing shifted and created challenges for projects like Project Exodus.
Kituwah’s lawsuit alleges fraudulent inducement, breach of fiduciary duty, and breach of contract. It seeks the return of the $2.5 million, interest, legal expenses, and additional damages to be determined through the case.
Smith retired after the 2004 season with 18,355 rushing yards. He spent 13 of his 15 NFL seasons with Dallas, won Super Bowl XXVIII MVP honors, and was inducted into the Pro Football Hall of Fame in 2010.
For now, the allegations have not been established as facts in court. Smith has made his position clear: he considers Project Exodus a failed business venture and intends to defend himself and 4 13 Solutions against the claims.