Zion Williamson, family sued for $1.9M by Ankr PBC for failing to pay back loan

New Orleans Pelicans forward Zion Williamson, his mother and stepfather are being sued for $1.9 million by Ankr PBC, a California-based tech company, in the U.S. District Court in New Orleans for failing to pay back $1.8 million of a $2 million loan.

Ankr PBC, which specializes in blockchain-related technologies used in finance and data storage, said the loan was granted to the two-time All-Star and his family members in September 2021.

Lee Anderson, Williamson’s stepfather, served as Zion’s business manager and demanded $150,000 up-front payment, according to the lawsuit. The loan from Ankr was supposed to be paid back by August 2022. A series of extensions were requested.

NEW: Zion Williamson sued for breach of contract after alleged failure to repay $2M loan from @ankr.

A big issue in the case will be whether co-defendant Lee Anderson, Williamson’s step-father, had authority to enter into contracts on Williamson’s behalf. Rocky 2023 for Zion. pic.twitter.com/sQpPccY7qY

— Jason Morrin (@Jason_Morrin) July 26, 2023

Moreover, the company was aiming to establish a potential marketing relationship with Williamson so that the Duke product would serve as an Ankr spokesperson. Williamson, 23, was selected No. 1 overall by New Orleans in the 2019 NBA Draft.

The family needed a bridge loan for investment obligations. A bridge loan is a short-term loan lent by a bank to cover an interval between two transactions. If Ankr had not made the loan, they were told Zion could not be their spokesperson.

“Ankr reasonably believed that Anderson possessed the authority to negotiate business arrangements for Williamson,” the lawsuit stated.

“Anderson represented that the loan was urgently needed, as the family had taken on expensive investments including the purchase of certain real estate in New Orleans and could not meet their obligations due to the temporary suspension of payments from Williamson’s sponsorship deals resulting from an injury.”

New Orleans Pelicans star Zion Williamson, his mother and stepfather are being sued for $1.9 million by Ankr PBC for failing to pay back $1.8 million of a $2 million loan

Prior to the lawsuit, Ankr helped Williamson with community events and provided a personal chef and personal trainer for the athlete. However, business ties ended after Anderson requested extensions, and Ankr’s $25,000 check from him bounced.

According to the lawsuit, Ankr and Anderson “entered into a forbearance agreement in which the company agreed not to sue if it received repayment of $500,000 by April 25 [of 2023],” the AP reported.

Additionally, the outstanding money was due by Jul. 6, 2023. Ankr said it received $500,000 on time, but $300,000 of that covered interest and $1.8 million was left unpaid, per the legal documents.

Williamson’s mother, Sharonda Sampson, was named as a defendant in the lawsuit because Ankr wired money into her bank account.

A league member associated with the Pelicans believes New Orleans should ‘pull the plug’ on the Zion Williamson era

“I had one person associated with a team tell me New Orleans should pull the plug on his era while they have the chance this offseason. I had another person tell… pic.twitter.com/MzSfLKIvpy

— NBACentral (@TheDunkCentral) July 27, 2023

Of course, this is not the first time Williamson and his stepfather faced a lawsuit. In June 2019, marketing agent Gina Ford countersued the NBA player for $100 million in damages, claiming breach of contract.

This lawsuit was filed after Williamson sued Ford and Prime Sports in an attempt to terminate his marketing agreement with her company.

In January 2021, a federal judge in North Carolina ruled that any agreement Ford had to represent Williamson was void due to her not being a licensed agent in that state at the time she met with the athlete.

The North Carolina native signed a five-year, $75 million shoe deal with Jordan brand in July 2019. Last July, Williamson signed a five-year, $193 million contract plus incentives.

Not to mention, injuries have taken a toll on Williamson’s NBA career. Knee, foot, and hamstring injuries have limited him to 114 games in his first four seasons. He’s missed 194 regular season games and all nine of the New Orleans Pelicans’ postseason contests.