Dallas Cowboys Hall of Famer Emmitt Smith is facing serious legal trouble after a tribal economic development organization filed a civil lawsuit accusing him and several business partners of fraud connected to a failed Texas solar energy deal.
The lawsuit was filed August 31 by Kituwah LLC, a tribally owned investment entity that operates on behalf of the Eastern Band of Cherokee Indians. The complaint names Smith, business partner David Mosley, their Dallas-based firm 4 13 Solutions Inc., Darrel Wilson and Wilson Holdings of North America LLC as defendants.
According to the lawsuit, Smith and Mosley introduced Kituwah to a proposed Texas solar development called Project Exodus in 2023. The project was described as the flagship venture of 4 13 Solutions, with projections showing it would begin generating power by the end of 2024 and produce nearly $13.8 million in first-year net income.
Kituwah alleges it agreed to participate in a joint venture through a newly formed company called Jabez 4 10 LLC. In September 2023, Kituwah loaned Jabez $2.5 million with the understanding that the funds would be used to acquire development rights from a company identified as GCI.
The lawsuit claims that after the money was transferred, 4 13 Solutions told Kituwah the full amount had been paid to GCI. However, Kituwah alleges it never received documentation confirming that payment or any transfer of project interests.
Kituwah later discovered the $2.5 million had actually been paid to Wilson Holdings, which had previously provided funding to 4 13 Solutions. The complaint states that under the agreement, Wilson Holdings was only supposed to receive that payment after permanent financing for Project Exodus was secured, which Kituwah says never happened.
The lawsuit further alleges that Wilson himself told Kituwah’s attorneys he did not believe permanent financing had been received and did not know what triggered the transfer of funds to his company.
Smith is individually accused of fraudulent inducement and breach of fiduciary duty. The complaint references emails Smith allegedly sent during negotiations, including one describing Kituwah’s bridge loan as crucial to our success and our brand.
The $2.5 million loan was due by February 1, 2024. Kituwah alleges no portion of the principal has been repaid despite repeated demands for payment before the lawsuit was filed.
Kituwah is seeking at least $2.5 million in damages along with interest and additional costs to be determined at trial. The allegations have not been proven in court and NBC 5 reported it had not received responses from those named in the suit.
