Cowboys legend Emmitt Smith accused of diverting $2.5 million in lawsuit over Texas solar project

Dallas Cowboys legend Emmitt Smith is facing a $2.5 million lawsuit stemming from an investment involving a Texas solar energy project, with a Native American economic development group accusing Smith and his business associates of misusing loan funds.

Lawsuit against Emmitt Smith centers on $2.5 million loan

Kituwah LLC, a tribally owned economic development agency associated with the Eastern Band of Cherokee Indians, filed the lawsuit in the Delaware Court of Chancery on Monday, according to court documents cited by ESPN, Courthouse News, and other outlets.

The lawsuit names Smith, his company, 4 13 Solutions, CEO David Mosley, Wilson Holdings, and its owner, Darrel Wilson, among the defendants. Kituwah alleges that Smith and his associates persuaded the organization to provide a $2.5 million loan for Project Exodus, a planned solar farm in Texas.

According to the complaint, the money was supposed to help secure an interest in the project and support its development. However, Kituwah alleges that the funds were instead sent to Wilson Holdings to compensate the company for previous unsuccessful loans and investments involving 4 13 Solutions.

The lawsuit claims that the agreement between Kituwah and 4 13 Solutions allowed Wilson Holdings to receive payment only if Project Exodus obtained long-term financing from the Department of Energy. Kituwah alleges that the required financing was never secured.

Project Exodus never reached the promised stage

The dispute reportedly dates back to early 2023, when Kituwah and 4 13 Solutions began discussing the Texas solar project. The parties created a separate company, Jabez 4 10, for the venture, with representatives from 4 13 Solutions serving on its management team.

The lawsuit alleges that Smith and his business associates provided Kituwah with updates about the project and its financing plans during 2023. Kituwah claims it was told the project had potential financing and power purchase arrangements that could support the development.

In August 2023, according to the complaint, 4 13 Solutions presented commitments from two energy companies. One allegedly offered to finance Project Exodus at a $396 million valuation, while another was expected to purchase power generated by the solar farm.

Kituwah alleges that neither arrangement was ultimately completed. The complaint claims the commitments were “either fabricated from the start, misrepresented out of context, or later withdrawn.”

The organization also alleges that the loan became overdue in February 2024 and that its attempts to resolve the matter continued through 2025 without a satisfactory response.

Lawsuit describes transaction as “essentially, like a Ponzi scheme”

The allegations become particularly serious when the complaint characterizes the transaction as “essentially, like a Ponzi scheme.”

According to the lawsuit, Darrel Wilson told Kituwah attorneys that he did not know what had triggered the $2.5 million payment to Wilson Holdings. The complaint further alleges that Wilson did not believe the permanent financing condition required for the payment had been satisfied.

Kituwah claims that instead of informing the organization that the financing requirement had not been met, Smith and his associates represented that the money had been used to acquire Project Exodus and that the acquisition had simply encountered delays.

The lawsuit accuses the defendants of fraudulent inducement, breach of fiduciary duty, and breach of contract. Kituwah is seeking at least $2.5 million, along with interest, legal fees, expenses, and any additional damages determined at trial.

Smith’s involvement in the case is through his role as chairman of 4 13 Solutions. The allegations in the lawsuit have not been proven in court, and Smith has not been found liable for wrongdoing.

ESPN reported that messages left with Smith, 4 13 Solutions, and its officers were not immediately returned. Attorneys for Kituwah also declined to comment.

Smith remains one of the most iconic figures in Cowboys history. He spent the majority of his Hall of Fame career in Dallas, winning three Super Bowls and finishing his NFL career as the league’s all-time leading rusher with 18,355 rushing yards.