New Lawsuit Filed Against Suns and Owner Matt Ishbia

A fresh lawsuit has emerged involving the Phoenix Suns and their primary owner, Matt Ishbia. This suit alleges that minority owners from the previous ownership group were blocked from accessing certain internal records.

Filed last week in Delaware, the lawsuit’s details were revealed in an edited version made public on Wednesday. Ishbia claims he attempted to “pressure and dilute” the shares of minority owners Andy Kohlberg and Scott Seldin during a capital call in June.

These minority owners state they could not secure information regarding the team’s expenditures or funding related to the Phoenix Mercury’s new $100 million facility announced last year.

“Our clients sued to obtain records that allow them to qualify as owners of the Suns,” remarked Michael Carlinsky and Michael Barlow from Quinn Emmanuel, representing the two minority owners. “They’re concerned about the management’s treatment of shareholders like them and seek clarification on the specific spending and capital initiatives happening within the organization. Transparency for minority owners is essential, and our clients believe it’s key to the franchise’s success.”

The attorneys involved represent Kisco WC Sports II and Kent Circle Investments. Notably, Kohlberg is the founder and CEO of Kisco Senior Living, while Seldin leads Kent Circle Partners.

Interestingly, these two men were among the 16 minority partners who opted not to accept the acquisition bid from Ishbia when he took over the franchise in 2023.

The lawsuit reveals that Kohlberg initiated discussions to buy a share from Ishbia and mentioned that he had received a deadline of June 1st to respond. However, following a capital call from Ishbia the very next day, they allege attempts were made to pressure them into a decision.

Ishbia has also reportedly suggested that claims may have been made regarding his signing of private agreements related to capital calls and side jobs.

This latest lawsuit marks the sixth legal challenge faced by the Suns, with prior suits coming from current or former employees.

In response, Sands’ lawyers conveyed in a letter to Kohlberg and Seldin’s counsel that their clients were “intimidated by unfounded lawsuits and sensational reporting,” implying that the media frenzy has added to the pressure during negotiations.