PHOENIX (AP) — Two minority owners of the Phoenix Suns and the team’s controlling owner Mat Ishbia have agreed to participate in a confidential binding mediation process to resolve a lawsuit over the franchise’s finances.
The filing on Monday in a Delaware Chancery Court says the action will be dismissed with prejudice when the mediation is completed, which means the same claims can’t be filed again.
A trial that had been scheduled for late July was also removed from the calendar, according to a copy of the filing obtained by The Associated Press.
Andrew Kohlberg and Scott Seldin originally sued Ishbia in August, alleging mismanagement and lack of transparency. Ishbia countersued in October. A new filing by the minority owners in November claimed that Ishbia was using the franchise as his “personal piggy bank” and that the franchise had gone from profitable to losing money.
Michael Carlinsky of Quinn Emanuel, attorney for the minority owners, declined comment. The Suns also had no comment.
Ishbia, a mortgage executive, bought a majority stake of the Suns and Phoenix Mercury from embattled owner Robert Sarver for $4 billion. Ishbia and his brother Justin said then that they would be acquiring more than 50% of the franchises, which included the entirety of Sarver’s share as well as some holdings from minority partners.
The sale was officially approved in February 2023.
Kohlberg and Seldin were the only minority owners who did not sell their shares when Ishbia purchased the team.
___
AP NBA: https://apnews.com/hub/nba
Read the full article here