MEMPHIS, Tenn. (AP) – A judge ruled Wednesday that Elvis Presley’s estate will argue that a company’s attempt to auction off Graceland is fraudulent, halting the foreclosure sale of the popular Memphis tourist attraction. said that there is a possibility of success.
A statement late Wednesday from a person believed to be a company representative said the company would be dropping the lawsuit, but Presley’s estate claims the suit is based on false documents. Online court records did not immediately show legal documents indicating the suit had been dropped.
Shelby County Mayor Jorday Jenkins has issued a temporary restraining order against a proposed auction scheduled for Thursday in Memphis, home to the rock and roll king’s former home. Jenkins’ injunction effectively upholds a previous injunction issued at the request of Presley’s granddaughter Riley Keough.
“Graceland is part of this community and is loved not only in this community but around the world,” the judge said.
The Promenade Trust, which manages the Graceland Museum, is $3.8 million in debt after defaulting on a 2018 loan, according to a public notice posted in early May for the foreclosure sale of the 13-acre property. Actress Keough inherited the trust and ownership of the home after her mother, Lisa Marie Presley, passed away last year.
Lisa Marie Presley used Graceland as collateral for the loan, according to a notice of foreclosure sale from Nowsunny Investments and Private Lending. The lawsuit filed last week by Mr. Keogh alleges that Mr. Nowsani submitted fraudulent documents related to the September 2023 loan.
“Lisa Maria Presley never borrowed money from Nowsunny Investments and never delivered the trust deed to Nowsunny Investments,” Keogh’s attorneys wrote in the complaint.
Neither Mr. Keogh nor lawyers for Nowsany Investments were in court Wednesday. Mr. Keogh’s lawyer, Jeff Germany, said outside court that he had not been in direct contact with Nowsany’s representatives.
Riley Keough attends the ‘War Pony’ after-party at Carlton Beach during the 75th Cannes Film Festival at the Palais des Festivals in Cannes, France on May 21, 2022. (Foc Kan/WireImage)
Nausani denied the allegations in the lawsuit and filed a motion to oppose the estate’s request for an injunction, but it was denied.
In a statement emailed to The Associated Press after Wednesday’s ruling, Nausani said he doesn’t intend to move forward with the lawsuit because key documents and loans in the case were recorded and obtained in other states and “the lawsuit would require litigation in multiple states.” The statement, sent from an email address listed in court documents, did not say which states the lawsuit would target.
“The company withdraws all claims,” the statement said.
Court documents included addresses for the company in Jacksonville, Florida, and Hollister, Missouri. Both were from the post office, and the Kimberling, Missouri reference was a P.O. The business is also not listed in state databases of registered entities in Missouri or Florida.
The estate’s lawsuit states that Kimberly Philbrick, the notary public named on Nowsani’s documents, never met Lisa Marie Presley or notarized any of her documents. The judge said a notary affidavit attached to the lawsuit casts doubt on the “authenticity of the signatures.”
Paul Golden, a New York-based attorney with Coffey Modica LLP who specializes in estate litigation but is not directly involved in the case, said the affidavit and other inconsistencies in the company’s filings appear to be “very strong evidence” supporting the Presley estate’s position.
Graceland opened in 1982 as a museum and tourist attraction in memory of singer and actor Elvis Presley, who died in August 1977 at the age of 42. It is visited by hundreds of thousands of tourists every year. A large Presley-themed entertainment complex across the street from the museum is owned by Elvis Presley Enterprises.
“Graceland will continue to operate as it has for the past 42 years, ensuring Elvis fans around the world can continue to have a best-in-class experience when visiting his iconic home,” Elvis Presley Enterprises said in a statement.
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Associated Press writer Heather Hollingsworth in Mission, Kansas, contributed.
