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Clippers owner Steve Ballmer sued for fraud by Aspiration investors

Clippers owner Steve Ballmer is being sued by 11 former investors in the sustainability firm Aspiration Partners.

Ballmer was added this week as a defendant in an existing civil lawsuit against Aspiration co-founder Joseph Sanberg and several others associated with the now-defunct company. Ballmer and the other defendants are accused of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.

“This is an action to recover millions of dollars that Plaintiffs were defrauded into investing, directly or indirectly, in CTN Holdings, Inc. (‘Catona’), previously known as Aspiration Partners, Inc,” reads the lawsuit, which was initially filed July 9 in Los Angeles County Superior Court, Central District.

Attorney Skip Miller said his firm, Miller Barondess LLP, filed an amended complaint Monday that added the billionaire team owner and his investment company, Ballmer Group, as defendants in light of recent allegations that a $28-million deal between Aspiration and Clippers star Kawhi Leonard helped the team circumvent the NBA’s salary cap.

“Ballmer was the perfect deep-pocket partner to fund Catona’s flagging operations and lend legitimacy to Catona’s carbon credit business,” says the amended complaint, which has been viewed by The Times. “Since Ballmer had publicly promoted himself as an advocate for sustainability, Catona was an ideal vehicle for Ballmer to secretly circumvent the NBA salary cap while purporting to support the company as a legitimate environmentalist investor.”

Although Ballmer did invest millions in Aspiration, it is not known whether he was aware of or played a role in facilitating the company’s deal with Leonard. The Times reached out to the Clippers for a comment from Ballmer or a team representative but did not receive an immediate response.

CTN Holdings filed for bankruptcy in March and, according to the lawsuit, is no longer in operation.

In late August, Sanberg agreed to plead guilty in federal court to a scheme to defraud investors and lenders of more than $248 million. On Sept. 3, investigative journalist Pablo Torre reported on his podcast that after reviewing numerous documents and conducting interviews with former employees of the now-defunct firm, he did not find evidence of any marketing or endorsement work done by Leonard for the company.

That was news to the plaintiffs, according to their amended lawsuit.

“Ballmer’s purported status as a legitimate investor in Catona was material to Plaintiffs’ decision to invest in and/or keep their investments with Catona,” the complaint states.

It also says that “Sanberg and Ballmer never disclosed to Plaintiffs that the millions of dollars Ballmer injected into Catona were meant to allow Ballmer to funnel compensation to Leonard in violation of NBA rules and keep Catona’s failing business afloat financially. Sanberg and Ballmer’s scheme to pay Leonard through Catona to evade the NBA’s salary cap was only later revealed in 2025, by journalist Pablo Torre.”

Miller said in a statement to The Times: “A lot of people including our clients got hurt badly in this case. This lawsuit is being brought to make them whole for their losses. I look forward to our day in court for justice.”

The NBA announced an investigation into the matter in early September. Speaking at a forum that month hosted by the Sports Business Journal, Ballmer said that he felt “quite confident … that we abided [by] the rules. So, I welcome the investigation that the NBA is doing.”

The Clippers said in a statement at the time: “Neither Mr. Ballmer nor the Clippers circumvented the salary cap or engaged in any misconduct related to Aspiration. Any contrary assertion is provably false: The team ended its relationship with Aspiration years ago, during the 2022-23 season, when Aspiration defaulted on its obligations.

“Neither the Clippers nor Mr. Ballmer was aware of any improper activity by Aspiration or its co-founder until after the government instituted its investigation.”

Leonard also has denied being involved in any wrongdoing associated with his deal with the now-defunct firm. Asked about the matter Sept. 29 during Clippers media day to open training camp, Leonard said, “I don’t think it’s accurate” that he provided no endorsement services to the company. He added that he hadn’t been paid all the money due to him from the deal.

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LA Film School sued over accreditation allegations involving fake jobs

The Los Angeles Film School is at the center of a whistleblower lawsuit from two former executives who allege the institution unlawfully collected government funds in an elaborate accreditation scheme.

Dave Phillips and Ben Chaib, the school’s former VP of career development and VP of admissions, respectively, allege in a federal lawsuit that the L.A. Film School violated federal employment requirements and accrediting standards. The lawsuit also names LAFS’ Florida counterpart Full Sail University, its main owner James Heavener and two other business partners as defendants.

The lawsuit, originally filed in L.A. federal court in June 2024, was recently unsealed after the Department of Justice opted to not investigate.

Representatives of LAFS could not be immediately reached for comment but have previously denied the claims.

In statement to Variety last week the school’s attorneys said that Phillips and Chaib are attempting “to resuscitate time-barred and erroneous allegations, which were already thoroughly investigated and settled by the Department of Education.”

For a university to be accredited and receive federal funding, the accreditation criteria state that a school must successfully instruct 70% of its students to land and hold jobs for which they are trained. The plaintiffs argue that graduates from the film school are unable to receive entry-level positions, citing an internal report which shows that most graduates earn $5,000 or less in their field of study. Only 20% of students were able to find work, the suit alleges.

LAFS receives over $85 million a year in federal financial assistance, including about $60 million in federal student loans, and more than $19 million in veterans’ financial aid funds. The Winter Park, Fla.-located Full Sail University, which teaches curriculum in entertainment-adjacent fields, also gets over $377 million per year in federal financial assistance, according to the complaint.

“For at least the last ten years, nearly all federal funds bestowed upon and taken in resulted from fraud with the institution using taxpayer funds to finance and facilitate multiple, temporary employment positions for LAFS graduates,” the lawsuit states.

Seeking to continue collecting government funds, the university is alleged to have spent nearly $1 million (between 2010 and 2017) to provide temporary employment from nonprofits and paid-off vendors. These jobs would usually last two days; LAFS would determine who would be hired, their schedule and wage. Students were led to believe these opportunities were “in-house production opportunities” and “post-graduate apprenticeships,” but instead, they were schemes planned and paid for by the school to remain an accredited university, according to the lawsuit.

Federal law prohibits higher education from “provid[ing] any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments.” When LAFS was audited in 2017, the plaintiffs further allege that the school misled the Department of Education auditors, denied the existence of the incentive compensation system and failed to disclose their connection to vendors.

Beyond collecting these federal funds, the former executives argue that the school misled students and potential enrollees by overstating the availability of jobs and making untrue or misleading statements related to employment.

LAFS was created in 1999 and is located on Sunset Boulevard in Hollywood. It offers a variety of bachelor’s and associate degrees in areas including film, film production and animation, with tuition ranging between $40,000 and $80,000.

Both plaintiffs, Phillips and Chaib, worked at the film school for 12 years and were members of the senior executive team. Phillips’ contract was not renewed in 2022.

The Accrediting Commission of Career Schools and Colleges recently renewed the school’s accreditation in 2023 for a five-year period.

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Assembly Speaker Rivas and brother sued by staffer who was fired

A recently fired California Legislature staff member filed a lawsuit this week against Assembly Speaker Robert Rivas claiming that the lawmaker and his brother, Rick, retaliated against her for reporting sexual harassment and alleged ethics violations.

Former press secretary Cynthia Moreno alleged in the lawsuit, filed Tuesday in Sacramento County Superior Court, that the speaker targeted her after she filed a sexual harassment complaint against a colleague in May 2024 and stripped her of “significant job responsibilities.”

Early this year, Moreno filed another complaint to the Workplace Conduct Unit, which investigates allegations of inappropriate conduct by legislative employees, alleging Rick Rivas, a nonprofit organization and a political action committee had “funneled money” to exert influence on the speaker, according to the lawsuit.

In response, Moreno alleges in the lawsuit, Rick Rivas used his influence to deny her a tenure-based pay raise and terminate her employment.

Rick Rivas is the American Beverage Assn.’s vice president for California and has acted as a political advisor to his brother. Rick Rivas did not immediately respond to an email seeking comment.

Elizabeth Ashford, a spokesperson for Robert Rivas, said the speaker’s brother had no role in Moreno’s employment and the lawmaker “recused himself from all matters related to Moreno’s termination,” which was handled by the Workplace Conduct Unit.

“The vast conspiracy theories included in this filing are absolutely false,” Ashford said in a statement, adding that “any court will see this for what it is: an attempt by a former employee to force a payout.”

The Assembly Rules Committee terminated Moreno in August after an investigation substantiated allegations of sexual harassment that had been lodged against her, according to Chief Administrative Officer Lia Lopez. Moreno has denied those allegations.

Moreno is seeking damages for lost wages and benefits, lost business opportunities and harm to her professional reputation. She’s also seeking a public apology for the “made-up sexual-harassment allegations launched against [her] for reporting Robert Rivas’ and Rick Rivas’ illegal and unethical actions,” the lawsuit states.

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Cardi B is sued for assault and battery over mic-throw incident

Cardi B’s infamous microphone-throw incident is being raised again, almost two years after it took place in Las Vegas.

An Ohio woman is suing the 32-year-old “Bodak Yellow” rapper, claiming battery, assault and negligence. The owners of Drai’s Beachclub and Nightclub, where the incident took place on July 29, 2023, are also being sued for negligence. The suit was filed days before the statute of limitations in Nevada for such charges ran out.

According to court documents filed in Clark County on Monday, the plaintiff — who chose to go by Jane Doe because of “psychiatric trauma” — alleges that during Cardi B’s performance, she encouraged the audience to “splash water on her” amid “visibly high-temperature conditions.” Though she initially approved, allegedly pouring water on herself and stating “Wooh that s— feel good,” it was when the plaintiff partook that the rapper abruptly and “forcefully” threw her microphone.

The object is said to have hit Jane Doe, with Cardi B shouting “I said splash my p—, not my face, b—.” Documents called it an “unreasonable escalation” that resulted in “harmful and offensive contact.” Though the deed was investigated by police at the time, the rapper was not charged. Representatives for Cardi B did not immediately respond on Thursday to The Times’ request for comment.

Just weeks later the microphone was auctioned on eBay and fetched $99,000. It is a key part of the case, as Jane Doe claims the sale “exacerbated emotional distress.” At the time, sellers told TMZ that the money would be given to two charities — the Wounded Warrior Project and Friendship Circle Las Vegas, a local program that helps individuals with special needs.

The plaintiff is seeking damages up to $15,000 for alleged physical and emotional injuries, as well as reputational harm.

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South Korea’s dental tech firm Medit sued in U.S. federal court

June 27 (UPI) — South Korea’s three-dimensional dental scanner maker Medit is facing a lawsuit filed by an Israeli company in a U.S. federal court for alleged patent violations.

According to court documents filed this month in the U.S. District Court for the District of Delaware, Densys accused Medit of infringing on two of its core U.S. patents related to intraoral scanning.

The lawsuit alleges that Medit’s line of scanners and associated software incorporate patented technology of Densys without authorization.

“Medit knowingly developed, has sold, sells, and offers to sell the accused product(s) in an infringing manner that was known to Medit or was so obvious that it should have been known to Medit,” Densys claimed in the complaint.

Seeking a jury trial, Densys is demanding damages, an injunction, and enhanced penalties for what it argues is willful infringement.

Founded in 2000, Densys is a dental technology company. It specializes in intraoral 3D scanning systems, which are used to create real-time digital impressions of a patient’s mouth.

MBK Partners, one of the largest private equity companies in Asia, channeled $1.8 billion in early 2023 to purchase Medit, the world’s third-largest 3D dental scanner manufacturer.

Thereafter, Medit struggled in both the top and bottom lines.

The Seoul-based corporation logged $203 million in turnover in 2022, up 44.07% from the previous year, for $84 million in net profit, up 38.18% year-on-year.

Under the ownership of MBK, however, its sales more than halved to $93 million in 2023 and the firm turned to a loss of $20 million. In 2024, Medit recorded sales of $105 million and netted a deficit of $17 million.

Comments from Medit were not available.

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Meta sued by Eminem’s publishing company over alleged copyright infringement

Eight Mile Style, a company that owns some of Eminem’s most popular songs, is suing social media giant Meta over alleged copyright infringement.

The lawsuit, filed in a federal court in Michigan, accuses the Menlo Park-based tech company of storing, reproducing and distributing Eminem’s music without obtaining the license to do so.

Eight Mile Style, which is based in Ferndale, Mich., is seeking at least $109 million from Meta and a court order to stop several alleged forms of copyright infringement.

Music is a big part of social media. On Meta’s platforms such as Facebook and Instagram, people add music in photos and videos they share publicly or with their friends and family.

But the way social media has changed the way people listen to and discover new songs has also sparked concerns from artists about whether they’re fairly compensated.

“Meta’s years-long and ongoing infringement of the Eight Mile Compositions is another case of a trillion (with a ‘T’) dollar company exploiting the creative efforts of musical artists for the obscene monetary benefit of its executives and shareholders without a license and without regard to the rights of the owners of the intellectual property,” the lawsuit said.

Meta said in a statement that it has licenses with thousands of partners globally and an “extensive” global licensing programs for music on its platforms.

“Meta had been negotiating in good faith with Eight Mile Style, but rather than continue those discussions, Eight Mile Style chose to sue,” the company said in an email.

Eight Mile Style owns and controls 243 compositions recorded by Eminem, a rapper and music producer that has created popular hits such as “Lose Yourself.” Meta did remove some of these songs including “Lose Yourself” from its music libraries, but other versions of the music including a piano instrumental cover and a karaoke version still remain on the platform, according to the lawsuit.

Meta not only allowed users who upload these songs to infringe on copyright but knowingly stored and reproduced them in its music libraries so users can use the music in videos and photos, the lawsuit alleges. Users have added Eminem’s music in millions of videos that have been viewed billions of times, according to the lawsuit.

Meta also unsuccessfully tried to obtain a license for Eminem’s songs as part of negotiations with the digital music royalty company Audiam even though the firm didn’t have the authority to give them that license.

“Meta executives have actively encouraged such rampant infringement in order to attract as many users as possible to, among other things, make advertising on their services more profitable for themselves,” the lawsuit said.

More than 3 billion people use one of Meta’s apps daily, and the company makes billions of dollars every quarter from advertising.

In the first three months of this year, Meta’s revenue reached $42.31 billion, an increase of 16% year-over-year. The company’s net income jumped by 35% to $16.6 billion in the first quarter.

This isn’t the first time Meta has faced legal issues over the use of Eminem’s music. In 2013, Eight Mile Style sued Facebook, alleging the social network used the Eminem song “Under the Influence” for an ad without their consent.

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Jennifer Lopez sued over paparazzi photo social media post

A photographer and photo agency filed a lawsuit against Jennifer Lopez alleging copyright infringement after the actor and singer allegedly posted copyrighted photos of herself from a pre-Golden Globes party to social media.

In the complaint, filed Saturday in federal court, photographer Edwin Blanco accuses Lopez of posting photos of her arriving and departing from the January event on Instagram and X without permission. Backgrid USA, a news and photo agency, filed a twin suit related to the same photographs, which the company and Blanco co-own, according to court documents.

The photos, which as of Tuesday remained on her Instagram and X with no visible watermark, show her in white fur coat and slip dress, clutching a Chanel purse. The post on Instagram is captioned “Weekend Glamour.”

A representative for Lopez did not immediately respond to an email seeking comment on Tuesday.

The lawsuit alleges that the “Let’s Get Loud” singer posted the photos to market designers she wore at the event. Blanco and Backgrid did not respond to a request for comment on Tuesday. But in a statement to Billboard, attorney Peter Perkowski, who represents Blanco and Backgrid, claims that Lopez’s use was “commercial in nature.”

“For example, Ms. Lopez used the images to spotlight the designer of her clothing and jewelry,” he told Billboard. “Leveraging the publicity from the event to promote her fashion affiliations and brand partnerships.”

He also told the outlet that both parties had “fruitful discussions” in the weeks after the photos were posted, with Lopez’s team orally agreeing to a monetary settlement. But when the papers arrived, Perkowski says she didn’t sign them and has not yet paid the agreed sum.

Backgrid and Blanco are seeking statutory damages up to $150,000 for each photo used as well as a jury trial, according to the lawsuit.

Lopez faced legal action in 2019 and 2020 for allegedly sharing photos of her taken by others. In 2020, her production company Nuyorican Productions was also sued for $40 million by a woman who inspired Lopez’s character in the film “Hustlers.”

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