GERAGOS 63 GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 SOUTH FIGUEROA STREET LOS ANGELES. CALIFORNIA 90017-341 I \Ow?on-bUJNI?d CONFORMED COPY ORIGINAL FILED Su erlor Court of California ounty of Los Anqeles GERAGOS Ea GERAGOS A PROFESSIONAL CORPORATION LAWYERS HISTORIC ENGINE CO. NO. 28 APR 0 6 2018 644 SOUTH FIGUEROA STREET Los ANGELES. CALIFORNIA 90017-341 1 Sham?? TELEPHONE (213)625-3900 3 . FACSIMILE (2 I 3) 2323255 s?sm - MARK J. GERAGOS SBN 108325 BEN J. MEISELAS SBN 277412 Attorneys for Plaintiff BIG3 BASKETBALL, LLC, JACKSON AKA ICE CUBE, AND JEFF KWATINETZ SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES CENTRAL DISTRICT Case No. 130700897 (Assigned to Hon. Rita Miller Dept. 16) BIG3 LLC, a limited liability company; O?Shea Jackson a/k/a Ice Cube, an individual; and Jeff Kwatinetz, an individual; FIRST AMENDED COMPLAINT FOR DAMAGES: Plaintiffs l. DEFAMATION [Civ. Code 44] VS- 2. DEFAMATION PER SE [Civ. Code 46] 3. TRADE LIBEL 4. INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONS Ahmed Al-Rumaihi, an individual; Faisal Al-Hamadi, an individual; Ayman Sabi, an individual; Sheikh Abdullah bin Mohammed bin Sau A1 Thani, an individual and as CEO of Qatar Investment Authority; DOES 1?100 UNLIMITED CIVIL JURISDICTION Defendants. DEMAND FOR JURY TRIAL SUMMARY Plaintiffs Big3 Basketball LLC, O?Shea Jackson a/k/a Ice Cube, and Jeff Kwatinetz bring this action against Defendants Ahmed Al-Rumaihi, Faisal Al-Hamadi, Ayman Sabi, and Sheikh Abdullah bin Mohammed bin Sau Al Thani as an individual and Chief Executive Of?cer of the Qatari Investment Authority (?Defendants?) for Defamation, Defamation Per Se, Trade Libel, and Intentional Interference with Contractual Relations. The BIG3 was the brainchild of founders and Plaintiffs, Ice Cube and Mr. Kwatinetz 1 FIRST AMENDED COMPLAINT FOR DAMAGES 1 who had worked together on the format, rules, and strategy for the league for over a year 2 before ever discussing the BIG3 with anyone outside of their company. 3 The league was to take the most popular played sport in the world, 3 on 3 basketball, 4 from the playground to the professional setting of NBA style arenas and broadcast games on 5 international and domestic television in a unique “festival” format. Ice Cube and Mr. 6 Kwatinetz each deployed significant capital and resources, worked tirelessly turning down 7 numerous other lucrative opportunities, and drew on their vast array of relationships and 8 experiences in the live entertainment, legal, television, and other media fields to set up BIG3 9 as a rare opportunity. It would not be an overstatement to say BIG3 was the culmination of GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 their total lives’ work. They then set up to execute their dream and began to raise additional capital and 12 began staffing the league from Commissioner on down to ball boys. Much to their delight 13 and to the surprise of many in the sports world, the league’s initial games in June 2017 were 14 a resounding success. Now that Ice Cube and Mr. Kwatinetz’s vision was vindicated, BIG3 15 immediately attracted many new sources of financing to expand on the league. 16 Touting their love of basketball and familial connections and relationships with the 17 royal Al-Thani Family in the State of Qatar, and thus access to vast resources and capital, 18 Defendants were brought to the BIG3 as passive investors and introduced by the league’s 19 former president and commissioner, himself just hired less than a year before. 20 Counter to expectations regarding these passive investors, to agreements signed and 21 promises made, and certainly an aberration from the decent behavior of BIG3’s initial 22 investment group, the Al-Thani “Royal” Defendants quickly started to insinuate themselves 23 into the affairs of BIG3 despite failing to live up to even their most basic obligation to fully 24 fund their investment. 25 Although constantly boasting of the Al Thani’s and their individual “massive wealth 26 and power,” Defendant’s aberrant behavior continued throughout the 10-week season 27 culminating in Mr. Al-Rumaihi single-handedly losing $700,000 in cash gambling after the 28 Las Vegas league finals in a mere few hours at casino tables in the presence of the Big3 staff, -2FIRST AMENDED COMPLAINT FOR DAMAGES 1 investors and players all the while Defendants still refused to pay the millions of dollars they 2 indisputably owed and admitted to owing the Big3. 3 These members and associates of the royal family made excuse after excuse for not 4 paying, all of which is documented in text messages and emails, where the blame for their 5 failure to fund the millions they owed the BIG3 ran the gamut from their “sinuses,” 6 “hiking,” it being a “long day bro,” and to bad press regarding Qatar associations with 7 alleged funding of terrorism. Also, like a simple debtor in hiding from a collection agency, 8 these Defendants with their purported links to the Qatar royal family, would go into hiding 9 and refused to return phone calls and ignore Plaintiffs. GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 Later, Defendants made their true intentions clear when they stated they would only 11 pay what they owed if they were given a substantially larger equity position along with 12 operating entitlements in the company, instead of the small, passive, minority stake they were 13 required, but failed to fund. 14 Through subsequent investigation, Plaintiffs learned that Defendants were falsely 15 bragging about “operating the league,” and how they were friends with Big3 celebrity 16 investors as well as Big3 and NBA basketball stars and legends. Oddly, following the 17 season, the Qatari Defendants even rented three mansions in the Los Angeles area, in Venice, 18 Malibu and Beverly Hills, so they could be near the Big3 founders and employees to further 19 insinuate themselves into their lives. 20 To maintain the façade of involvement with the league, and to increase their influence, 21 Defendants targeted certain, now former, Big3 employees with gifts including trips to St. 22 Tropez and Ibiza, parties on Yachts, expensive meals, use of their exotic cars, invitations to 23 parties at their Los Angeles mansions, and investments in personal business projects 24 unrelated to the Big3. 25 As it turns out, Defendants were deeply concerned with the rapidly escalating political 26 pressure and public relations crisis facing their country, including the military blockade 27 against Qatar by its neighbors based on purportedly supporting extremism. There was also 28 more focus on controversy and accusations of bribes surrounding the Qatar 2022 World Cup, -3FIRST AMENDED COMPLAINT FOR DAMAGES 1 the firing of a head of the Qatar owned BeIN Sports, and controversy related to its purchase 2 and operation of French soccer club PSG and the huge payment it made to sign star Neymar. 3 Also not brought to Plaintiffs attention by former commissioner and president was 4 Defendants history of scandal surrounding its basketball programs. Defendants believed 5 their relationship with the BIG3 and the celebrities, entertainers, and basketball stars 6 associated with the league would improve the public perception of Qatar in the United States 7 as well as its standing in the arena of sports on a global level. Unfortunately for the Al-Thani 8 family and associates, Plaintiffs operated the league for the benefit of its players and fans and 9 to maximize shareholder value, not to do the bidding of the needs solely of Qatar. GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 Defendants conduct knew no bounds when it came to their intention to wrest control 11 of the league from its founders, players and all the other well-intentioned investors. First 12 using non-payment to create leverage to shamelessly demand increased ownership as well as 13 the attempted installment of Defendant Sabi as COO despite no experience in sports or 14 entertainment, then employing means of bribery and influence peddling to exert pressure on 15 league leadership. 16 However, on or around February 14, 2018, after giving Defendants multiple chances 17 to pay the millions they indisputably owed and admitted to owing, Plaintiffs moved swiftly 18 and decisively and initiated legal action against a corporate shell operated by Defendants and 19 removed Defendants from any connection with the league for their failure to pay. It would 20 later be discovered the additional embarrassment such action taken on that particular day 21 against the Al-Thani’s would create for Defendants. 22 Finding that their efforts to obtain operating control had failed and the humiliation 23 Defendants felt being notified of their removal from BIG3 amidst their yearly Qatar National 24 Sports Day in which the Al-Thani’s display to the world their success and importance in 25 sports, Defendants retaliated with a campaign of disinformation and by making outrageous 26 defamatory statements against all Plaintiffs and interfering with Plaintiffs existing and 27 prospective contractual relations, to harm the league and attempt to destabilize it for one last 28 desperate shot at control. -4FIRST AMENDED COMPLAINT FOR DAMAGES GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 1 The conduct by Defendants is documented in text messages, emails, photographs, 2 letters, declarations, and other evidence which was obtained by Plaintiffs. Further, 3 compromised employees refused to cooperate with an additional independent investigation 4 initiated by Plaintiffs to determine the extent of the Defendant’s wrongdoings. Some of that 5 evidence is contained in, and attached to this Complaint. Additionally, the conduct by 6 Defendants reflects a cautionary tale of doing business with affiliates and proxies sent by the 7 Qatar Investment Authority to do business in the United States. 8 Ironically, when Ice Cube and Jeff Kwatinetz pursued their lifelong dream of starting 9 a basketball league from the ground up, and invested their personal assets and time in doing 10 so, the last thing on their list of plausible concerns and impediments would be the malicious 11 and reckless conduct of foreign actors and compromised agents and actors working on their 12 behalf. Nonetheless, Plaintiffs and the players of the Big3 who are heavily invested in the 13 success of the league, have united to confront this challenge and protect their American 14 dream. 15 Plaintiffs, and all players in the Big3 have been severely damaged by the conduct of 16 Defendants, and collectively seek $1.2 billion in consequential damages, or approximately 17 $20 million per player in the Big3. 18 INTRODUCTION 19 20 21 1. basketball league, on its behalf as a limited liability company. 2. 22 23 24 25 This action is brought by Plaintiff BIG3 LLC, a three-on-three professional This action is also brought by Plaintiff O’Shea Jackson, a/k/a Ice Cube and Jeff Kwatinetz, each who suffered significant damages and reputational harm based on the wanton, willful, and malicious defamatory statements made by and/or aided and abetted by Defendants, and each of them. 3. Defendants are individuals who reside in and/or maintain substantial contacts 26 with the United States and who used their purported relationship with the royal family in 27 Qatar and their control and/or influence over the Qatari Sovereign Fund to conduct business 28 in the United States, and to engage in the tortious conduct as set forth below. -5FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4. and/or collectively, engaged in malicious, tortious, and/or reckless conduct causing substantial damage to all Plaintiffs. 5. 4 5 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 6 As alleged below, and in the accompanying exhibits, Defendants individually, Defendants, in their individual and personal capacity, and using corporate shells including Sport Trinity LLC (currently a Respondent in a pending JAMS arbitration, Big3LLC v. Sport Trinity, LLC) attempted to seize operational control over Big3 LLC by, among other conduct, (1) fraudulently inducing Big3 to enter into a Unit Purchase 7 Agreement whereby Defendants never intended to pay the millions they owed to extract 8 more equity, (2) bribing and/or attempting to bribe former employees of the Big3 with 9 money, gifts, and vacations to gain more influence in the league, (3) investing and/or 10 promising to invest in business ventures of now former employees in the Big3 as a means of 11 improper influence and control, (4) maliciously and wantonly defaming Big3, Ice Cube, and 12 Jeff Kwatinetz to players and making false representations about the league and its 13 operations to foment discord and disunity against the Big3 and its founders, and (5) 14 defaming Plaintiffs, and aiding and abetting and causing others to make defamatory and 15 16 17 18 19 malicious statements about and against Plaintiffs, as retaliation for Big3 filing a lawsuit against Defendants for failing to pay the money they owed. 6. Plaintiffs stand united against Defendants. Plaintiffs have been severely damaged and suffered reputational harm and other consequential damages from Defendants’ conduct, in an amount no less than $1.2 billion, accounting for approximately $20 million in damages per player, in addition to other damages. 20 THE PARTIES 21 22 7. The Big3 LLC is a Delaware Limited Liability Company with its principal 23 place of business in Los Angeles, California. The Big3 is in its second season which starts in 24 June 2018. 25 26 27 8. O’Shea Jackson, aka Ice Cube, is an individual residing in Los Angeles, California. 9. Jeff Kwatinetz, is an individual residing in Los Angeles, California. 28 -6FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 10. Defendant Ahmed Al-Rumaihi is a citizen of Qatar, who is currently domiciled in Los Angeles, California. 11. Defendant Faisal Al-Hamadi is a citizen of Qatar, who conducts substantial business and has sufficient and substantial contacts with this jurisdiction. 4 5 6 7 8 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 9 12. Defendant Sheikh Abdullah bin Mohammed bin Sau Al Thani, is a citizen of Qatar, who conducts substantial business and has sufficient and substantial contacts with this jurisdiction. 13. Defendant Ayman Sabi, born in Tripoli, Libya, is a citizen of the United States, resides in Miami, Florida, and has sufficient and substantial contacts with this jurisdiction. 14. Plaintiffs are unaware of the true names and capacities of the Defendants sued 10 herein as DOES 1 through 100, inclusive, and therefore, pursuant to section 474 of the Code 11 of Civil Procedure, sues these Defendants by such fictitious names. Defendants DOES 1 12 through 100 are responsible in some manner for the activities alleged herein and each was 13 acting as an agent for the others. Plaintiffs will amend this Complaint to add the true names 14 of DOES 1 through 100 once they are ascertained. 15 16 15. Officer of Qatar Airways as Defendant DOE 1. JURISDICTION AND VENUE 17 18 16. 19 20 21 After further investigation, Plaintiffs identify Akbar Al Baker Chief Executive The acts that caused Plaintiff’s damages as alleged herein primarily occurred in the County of Los Angeles within the jurisdiction of the Superior Court of Los Angeles County 17. This Court has jurisdiction over the present matter because, as delineated 22 within this Complaint, the nature of the claims and amounts in controversy meet the 23 requirements for the unlimited jurisdiction in the Superior Court of Los Angeles County. 24 FACTS 25 Qatar Investment Authority 26 27 28 18. The State of Qatar is located on a small peninsula bordering Saudi Arabia and is backed by the world’s third-largest natural gas reserves. The country has the highest per -7FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 capita income in the world. Qatar is a monarchy ruled by the Al-Thani royal family. The current Emir is Sheikh Tamim bin Hamad Al Thani. 19. The Emir’s relative is Defendant Sheikh Abdullah bin Mohammed bin Sau Al Thani, who heads the Qatari sovereign fund known as the Qatar Investment Authority. 4 5 6 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 7 20. Qatar has recently been placed under a military blockade from its Middle East neighbors including Egypt, Bahrain, the United Arab Emirates and Saudi Arabia because of concerns regarding financial support for terrorism, a view that Qatar disputes. 21. Recently, the Al-Thani Royal Family, through the Qatar Investment Authority, 8 announced plans to invest hundreds of billions of dollars overseas, with a strong emphasis on 9 United States investments, through an entity called “Qatar Investments.” It appears to be an 10 aim of the Al-Thani Royals to sway public opinion of U.S. citizens towards Qatar through 11 employing this investment strategy. 12 22. Defendant Al-Rumaihi, himself a member of the Qatar royal family, holds 13 himself out as one of the heads of Qatar Investments. Defendant Al-Rumaihi is the same 14 former diplomat who is responsible for an aborted attempt, resulting in litigation, 15 16 17 surrounding the purchase of a $100 million townhouse at 19 E. 64th Street, New York City – in what would have been the most expensive townhouse purchase in the history of New York City at the time. Six months after agreeing to buy the property, and the day before the closing of the transaction, Qatar backed out of the deal. 18 19 20 21 22 23 24 25 26 27 28 23. Al-Rumaihi (right) with his spurned broker, March 2014, NYC Upon recent investigation, it has been uncovered that in the lawsuit filed against the Consulate of the State of Qatar in connection with this failed $100 million real -8FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 estate transaction, 1964 Realty LLC v. Consulate of the State of Qatar (1:14-cv-06429-ER, SDNY), Defendant Qatar tried getting out of the deal by arguing that Defendant Al-Rumaihi misrepresented his credentials and did not have authority to enter into the deal on behalf of Qatar. From the Court’s Order to Deny Qatar’s Motion to Dismiss: 4 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 13 14 15 16 24. Recently, Mr. Rumaihi’s Wikipedia page reflects frequent edits removing negative history about this and other transactions. Under a cloud of this and other allegations, Mr. Rumaihi was recalled back to Doha, Qatar. But he would soon resurface. 25. Qatar Investments claims it is capable of deploying $35-100 billion overseas 17 in investments. However, its interactions with the Big3, which appears to be an exemplar of 18 how it conducts business overseas, is a cautionary tale for others looking to do business with 19 Qatar. Specifically, Defendants did not fund their obligations to the Big3 to the sum of a 20 mere 5 million dollars, delaying payments in an effort to extract control of the league. When 21 those efforts failed, they attempted other improper and coercive means of influence peddling 22 to achieve their goals. When that failed, and Defendants conduct was exposed, Defendants 23 sought to defame the Big3 leadership with ludicrous charges in order to destabilize the 24 25 26 27 28 league so that their proxies could be installed instead. 26. Whether by design or otherwise, Defendants’ constant excuses for not paying – literally blaming their “sinuses,” “going on hikes,” or that it had been a “long day bro,” in text messages – reflects an amateurish, undignified approach to business which is hard to believe is countenanced by a royal family such as the Al-Thani’s. While Mr. Rumaihi flaunted his resources losing over $700,000 in a few hours of gambling after the BIG3 -9FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 championship in Las Vegas last August, he somehow was still unable to muster up the $5 million that at that time was already two months overdue to BIG3. 27. At a time when Defendants boast of hosting the 2022 World Cup, their tortious and reckless conduct directed at the Big3 and the basketballs stars and legends affiliated with 4 the league, is potentially an ominous foreshadowing of what is to come. 5 6 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 7 28. Ayman Sabi: Defendant Ayman Sabi is not a relative of the Qatari royal family, although he made claims to be a board member of the Qatar Investment Authority. He also bragged of 8 being a board member of an Abu Dhabi government fund, a claim he even acknowledged as 9 putting him in a “strange” position since that would make him an advisor and agent to two 10 countries on opposing sides of the blockade. BIG3 former President and Commissioner, 11 supported these claims as did Mr. Rumaihi. Defendant Sabi indeed had at least a previously 12 established business relationship with Defendants Al-Rumaihi and Al-Hamadi; two months 13 after they were assigned to Vice Chairman and Chairman positions respectively in March 14 2017 of two Qatari food companies registered in Australia, they made Mr. Sabi a director. 15 16 17 18 19 20 21 22 29. To the surprise of BIG3 executives who understood Mr. Sabi to be a Qatari national as told to them by the former BIG3 Commissioner and President, by Mr. Rumaihi, and by Mr. Sabi himself, Defendant Ayman Sabi is an American citizen who lives in Miami. In fact, although born in Tripoli, Libya in 1963, Defendant Sabi migrated to the United States and has been a resident here since at least the early 1980’s. He studied at North Carolina State University and in 1989 founded a company “Sabi International Developments Inc” in Raleigh, North Carolina which he then merged with “Medvast Inc” in 1993 and interestingly based its headquarters in Cyprus. 30. Mr. Sabi later became the chief executive of a barbeque restaurant chain 23 known as “Roadhouse Grill,” which was the subject of a federal securities class action and 24 was forced into involuntary bankruptcy in 2002. 25 26 27 28 - 10 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 5 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 6 31. Mr. Sabi claims to be connected with the rich and powerful internationally, but 7 it appears his most substantial connection was his fortuitous encounter, following the 8 bankruptcy of Roadhouse Grill, with Defendant Al-Rumaihi. Although the circumstances of 9 how Defendants met are unclear, Mr. Sabi had a fellowship with Shlomy Alexander also 10 from Miami. More interestingly, Shlomy is the father of Oren and Tal Alexander, the same 11 brokers who “sold” the $100m townhouse to Defendant Al-Rumaihi in 2014. 12 13 14 15 16 17 18 32. In another unexplained stroke of “luck,” Defendant Sabi connected with Big3’s former President and Commissioner who would vouch for him and bring him and his partners to the league as accomplished businessmen with international connections, stating that their involvement with the league would be critical for the Big3’s expansion. 33. His partners included the aforementioned Defendants Al-Rumaihi and Al- Hamadi, and they stated they also spoke for Defendant Sheikh Al Thani, half-brother of the Emir of Qatar himself, who would be able to provide capital and connections to greatly expand the Big3. While the league had just debuted successfully to an unexpectedly large 19 audience of over 15,000 at New York’s Barclay’s Center and experienced more than three 20 times the expected ratings on Fox Sports, the Qatari group made large promises including the 21 ability to move quickly. What the former Commissioner and Mr. Sabi failed to disclose is 22 that Mr. Sabi was in a secret, romantic relationship with the former Commissioner’s sister. 23 34. The former disgraced Commissioner emailed other Big3 executives following 24 their successful debut: “Ayman [Sabi] and his partner are seriously interested in taking 25 the remaining equity available for BIG3. They add an incredible amount of value and 26 would be strategic in the growth internationally.” Shortly thereafter, the Commissioner 27 and President demanded (and received) a substantial “finder’s fee” from Defendants for 28 introducing these individuals to the league. - 11 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 5 6 HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 And while Mr. Sabi boasted of his vast connections and promised he would deliver international sponsors and develop international media relationships for Big3 with a focus on the Middle East and China, he failed to deliver on any of his claims. In fact, Defendant Sabi was not even permitted to revisit China recently based on “issues” with his Visa. It has also been uncovered that despite holding himself as an agent of Qatar, Defendant Sabi is not registered under the Foreign Agents Registration Act (FARA). 36. Instead of delivering value to the Big3, it is now clear that the Qatari group 7 was unitarily focused on procuring influence in the United States for the Al-Thani regime 8 through controlling a league made up of NBA stars and legends such as Clyde Drexler, 9 Chauncey Billups, Corey Maggette, Jermaine O’Neal, and Dr. J among many others 10 GERAGOS & GERAGOS, APC 35. affiliated with the Big3. 11 12 37. “Sport Trinity” Defendant Sabi introduced his partners to the Big3, including Defendant Al- 13 Rumaihi and Defendant Al-Hamadi. Defendant Sabi explained that Defendant Al-Rumaihi, 14 Defendant Al-Hamadi, and their benefactors Defendant Sheikh Mohammed bin Sau Al 15 Thani were members of the Qatar royal family and ran Qatar Investments. 16 17 18 38. Defendant Sabi explained that he also represented Qatar and was an agent on their behalf, and that his partners were in direct discussions with Defendant Akbar Al Baker and, members of the royal family, the Qatar Investment Authority, and the Emir himself about their potential investment in the Big3. Defendant Sabi stated that he and his partners 19 20 21 22 loved basketball, especially the Emir. Defendant Sabi stated that he and his partners wanted to invest in a successful sports league in its infancy, and to assist with the international growth of the league. 39. In truth, it turned out that Defendants involvement with the Big3 was more 23 about perceived influence in America and Defendants seeking to get positive public relations 24 for Qatar. 25 40. During the Big3 summer season and then beyond, it became apparent that 26 Defendants were focused on improving the image of Qatar in light of the blockade and the 27 now desperate need to improve rapidly deteriorating international relations beginning to 28 create an existential threat to the small Gulf nation. They also believed BIG3 could distract - 12 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 from Qatar’s controversies surrounding it’s 2022 World Cup. Qatar has also experienced controversies surrounding its own basketball programs. In 2011 amidst charges it “imported” players resulting in FIBA Asia suspending five of its players, Sheikh Saud bin Ali Al Thani was forced to resign from his post as Qatar Basketball Federation (QBF) 4 5 6 7 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 8 President. Defendants saw involvement in BIG3 as an opportunity to be heroes to the Emir for restoring prestige to Qatar and the Al Thani family in the sport of basketball. 41. Going back to on or around July 7, 2017, Defendant Sabi sent the Big3 a term sheet for the purchase of equity in the company and requested a 30 percent stake in the Big3. The Big3 rejected, out of hand, the request for 30 percent of the company, but ultimately 9 agreed to a much smaller, passive, minority stake in the company. Thereafter, Defendants 10 formed Sport Trinity LLC in Delaware, and entered into a Unit Purchase Agreement on or 11 around July 14, 2017. The terms of the Unit Purchase Agreement were simple. Sport 12 Trinity was to pay Big3 $11.5 million upon the signing of the Agreement. Separately, Sport 13 Trinity was to pay the Big3 an additional $9 million in sponsorship money over three years 14 which Sport Trinity claimed it could easily obtain from sources such as airlines and media 15 owned and controlled by the Al-Thani family. Specifically, Defendant Sabi and Al-Rumaihi 16 stated that Defendant Akbar Al Baker, as CEO of Qatar Airways, and in his personal 17 18 19 20 21 capacity, was a source of funding for Sport Trinity and was involved in its decisions. Further, Defendant Sabi and Al-Rumaihi had the Big3 prepare investment material, including an “investor deck” which Defendants stated was needed to lock in the Qatar Airways sponsorship they promised. Defendants stated that Defendant Mr. Al Baker had personally requested the investment material. Here is the front page of the deck that Mr. Al Baker requested: 22 23 24 25 26 27 28 - 13 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 42. and an additional $1 million in December 2017 and claimed that the rest of the money was “on its way” but was delayed due to certain transfer restrictions on Qatar. 43. 4 5 6 HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 Big3 has since learned that Defendants intentionally failed to fully fund the Big3 as a part of a business strategy it deploys wherein it partially funds a company, withholds the remaining funds to deprive the company of critical operational support, and demands larger equity stakes and operational control in exchange for money it already owes 7 – all the while seeking influence within the company by attempting to lavish others with gifts 8 and bribes. Alternatively, it is quite possible the wealth Defendants boast of is a mere 9 façade. 10 GERAGOS & GERAGOS, APC Instead of paying the full $11.5 million, Sport Trinity only paid $6.5 million 11 44. The Big3 Season The inaugural BIG3 season took place June 2017 through August 2017. 12 Games were held across the United States. Upon entering into the Unit Purchase Agreement, 13 Defendants began attending games and demanded courtside seats for themselves, relatives, 14 and friends. As seen below, Defendants Al-Rumaihi and Defendant Sabi were frequently 15 photographed courtside and invited the Big3 staff and players to party with them after 16 games. 17 18 19 20 21 22 23 24 25 26 27 28 - 14 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 45. Over time, the BIG3 investors and founders became uncomfortable with the assertive and in-your-face presence of these small minority stakeholders at games and at the hotels where players and staff stayed. Yet, efforts were made by Plaintiffs to do their best, at first, to be accommodating and cordial in the interest of maintaining a positive relationship 4 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 5 with individuals originally perceived as legitimate investors. 46. Following the season, in another bizarre turn of events, Defendant Al-Rumaihi 6 moved his residence to Los Angeles, California, and rented two mansions – one in Venice 7 peculiarly close (just blocks away) from where the founders of the BIG3 lived - and one in 8 Beverly Hills where he would host parties for employees of BIG3 along with imploring the 9 founders to attend “out of respect.” (The founders rejected invitations to Defendant Al- 10 Rumaihi’s Beverly Hills mansion, although other employees including the former 11 Commissioner frequently attended). Defendant Sabi also rented a Malibu residence where 12 he and his girlfriend, Adrienne Mason (sibling and affiliate of former BIG3 commissioner) 13 also took up residence. 14 Collection Efforts and Failure to Pay 15 16 17 18 19 47. During the season, and immediately thereafter, consistent and persistent efforts were made by Big3 founder and Plaintiff Jeff Kwatinetz to collect on the remaining millions of dollars owed. Mr. Kwatinetz attempted to balance being polite to Defendants and to avoid the implication that the royal family could not afford to pay, with the need to protect the BIG3 and its investors who all fully funded their obligations. 20 21 48. By way of just one, of many, examples of emails sent by Plaintiff Kwatinetz, on or around August 30, 2017, Plaintiff Kwatinetz emailed Defendant Al-Rumaihi that he 22 was “getting a little nervous” that Defendants had not fully funded their contractual 23 commitment. 24 25 26 27 28 - 15 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 49. Throughout the Fall 2017, Defendant Al-Rumaihi and Defendant Sabi continued to make excuses why they couldn’t pay. Defendant Al-Rumaihi repeatedly blamed Defendant Sabi for the failure to pay; Defendant Sabi repeatedly blamed political issues affecting the Qatar Investment Authority for not being able to get access to the money. 13 14 15 16 50. At all times, Defendants continued their flattery, congratulating the Big3 founders in emails and text messages about the remarkable success of the league. Defendants sent nothing but positive emails and messages about the leadership of the league. 51. On or around November 2017, Defendant Al-Rumaihi made a final personal 17 appeal to Plaintiff Kwatinetz to pay if Defendant Sabi couldn’t: “Look me in the eyes. I 18 swear on my children’s lives I will pay you personally by mid to end of January if 19 Ayman [Sabi] doesn’t pay.” 20 52. In fact, Defendant Al-Rumaihi claimed that he would get the money directly 21 from the Qatar royal family and Qatar Investments if Defendant Sabi and Sport Trinity were 22 unable to pay. However, Defendant Sabi did not pay and Defendant Al-Rumaihi did not keep 23 his word, despite his bizarre and gratuitous appeal on the lives of his children. 24 25 26 53. Instead, Plaintiff Kwatinetz had to continue chasing down Defendants for payment until Plaintiffs simply had enough and refused to be victims of what was clearly a premeditated scam, or frankly, an inability of the Defendants to afford the share purchases or to make good on the $9 million in sponsorship money. 27 28 54. Defendant Al-Rumaihi also began to demand that, despite the short window for planning such a major event, that BIG3 arrange for the 12-15 best BIG3 players to play - 16 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 exhibition games in Doha, Qatar specifically in mid-February. Plaintiffs explained that players would not all be available and ready in training and to play but he would attempt to make it happen if a written offer was made, but also explained holding a one-off event would be a huge financial risk and that with more time several other locations could be secured 4 5 6 7 8 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 9 making it financially worthwhile and logistically viable for the player and coaches. It was painfully clear that Defendants had no understanding of the logistics such an event would require. To no surprise given that Defendants still owed millions to BIG3 and had exhibited a clear pattern of lies to get what they wanted, no such written offer ever came. 55. Plaintiffs Kwatinetz and Defendant Al-Rumaihi continued exchanging a series of text messages which show the varying, and at times peculiar and embarrassing, excuses 10 made by Defendant Rumaihi (a purported member of the Qatar royal family) to avoid paying 11 the BIG3. Notably, in the text messages, Defendant Al-Rumaihi concedes that he owed the 12 BIG3 money since July 2017, that he clearly remembers his discussions promising to pay, 13 but instead makes excuse after excuse. 14 15 16 56. Specifically, on or around December 10 and 11, 2017, Mr. Kwatinetz attempted to set up a meeting with Defendant Al-Rumaihi who instead of substantively responding sent a picture of his teeth being worked on, apparently to conjure sympathy. 17 18 19 20 21 22 23 24 25 26 27 28 - 17 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 57. Further, instead of paying what he owed, Defendant Al-Rumaihi would send Mr. Kwatinetz news articles regarding political issues facing Qatar and would respond to important meeting requests by saying, “long day bro. . .” 4 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 13 14 15 16 17 18 58. In addition to these excuses, Defendant Al-Rumaihi also frequently boasted of his friendship to Senator John McCain and throughout these months blamed not being able to have time to get the funds because he was purportedly busy visiting Senator McCain in the hospital. 59. Further, on or around February 2, 2018, when Plaintiff Kwatinetz confronted 19 Defendant Al-Rumaihi about how “disappointed” he was over Defendants failure to pay and 20 how Plaintiff Kwatinetz “was made to look really stupid with all the others as I gave my 21 word to everyone [because] you gave me your word . . . and you and Ayman just 22 disappeared,” Defendant Al-Rumaihi responded at 2:36 PM in the afternoon, “Literally 23 just woke up. My sinuses are so bad. . .” 24 25 26 27 28 - 18 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 13 60. Again, on or around February 3, 2018, when Mr. Kwatinetz explained, “I need to hear from you immediately or I am assuming that we are not resolving this. . .” Defendant Al-Rumaihi emphasized that he was “hiking,” and that he was going to get ready for the memorial for the death of BIG3 player Rasual Butler he knew Mr. Kwatinetz was 14 15 attending so they could speak there. Defendant Al-Rumaihi responded, “When we last spoke I told you we were resolving this.” 16 17 18 19 20 21 22 23 24 25 26 27 28 - 19 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 5 61. Mr. Al-Rumaihi did not enter the memorial but instead waited in his Bentley until it was over and Mr. Kwatinetz and the other grieving attendees began to exit. Mr. AlRumaihi exited the car and approached Mr. Kwatinetz on the sidewalk in view of grieving friends and relatives to inform him all “would be worked out.” When Mr. Kwatinetz asked if the remaining millions would be wired in to the BIG3 account by the following Monday as outlined in the legal correspondence, Mr. Al-Rumaihi said no and that he needed 25% of the 6 league and Ayman to be COO and that Mr. Kwatinetz should show him “respect as a royal 7 family member.” Mr. Kwatinetz informed him that respect came with paying monies owed 8 now over six months and refraining from constant lies. Al-Rumaihi became incensed and 9 loudly screamed at Mr. Kwatinetz and threatened his life and his family noting “You don’t 10 know who I know in LA and what they’re capable of. You should think of your safety and 11 the safety of you and your family.” Kai Henry intervened as many mourners started glaring 12 at Mr. Al-Rumaihi, although Kai claimed to others not to have heard the content of the 13 threats. Mr. Kwatinetz immediately left and drove home employee Angelica Cobb who he 14 immediately told of the threats. Mr. Kwatinetz then called his wife as well as Ice Cube to 15 16 17 inform them of the threats on his and his families lives. His wife was especially nervous at home with a newborn as Mr. Al-Rumaihi had maintained a residence a mere two blocks away from them. Mr. Kwatinetz hired security to protect himself, his family and his employees. He later learned that Mr. Rumaihi started to employ the services of numerous 18 19 20 21 armed “security” who were seen on the premises of his Beverly Hills estate. 62. In short, Defendant Al-Rumaihi never fulfilled his promise and contractual obligations. Defendant Sabi’s communications with Plaintiff Kwatinetz are similar. 63. Up until the BIG3 filed Arbitration and initiated its independent corruption 22 investigation into the conduct by Defendants, Defendant Sabi’s emails and text messages all 23 included over-the-top, indulgent, praise about much he “loved” and “admired” Plaintiff 24 Kwatinetz and Ice Cube. 25 26 27 28 64. Defendant Sabi would frequently ask Plaintiff Kwatinetz how “daddyhood” was going as Plaintiff Kwatinetz’s wife recently had a baby. 65. Defendant Sabi would also tell Plaintiff Kwatinetz that he was going to Qatar, or as he called it “Q,” to meet with his “best friends” from the royal family where he would - 20 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 get the money they owed the BIG3 and where and when he would also get sponsors for the BIG3 – neither of which actually ever took place. 66. For example, in text messages from November 1, 2017, Mr. Sabi stated in reference to his trip to Qatar: “I’m heading to Q to wrap all shit up. From all indications that should b done with all this coming week.” 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 13 14 15 16 17 18 19 20 21 67. After exchanging pleasantries during Christmas 2017, Defendant Sabi then took the approach of ignoring phone calls and avoiding meetings and encounters with Plaintiff Kwatinetz. 68. Between January 17, 2018, and February 1, 2018, Defendant Sabi ignored repeated phone calls from Plaintiff Kwatinetz to avoid paying what he owed the Big3. 69. On or around February 1, 2018, when Plaintiff Kwatinetz expressed his 22 frustration for being childishly ignored, Defendant Sabi responded with “Hola Bro . . .Sorry 23 for the delay, I have had overseas guests and family all this week. I will call you soon.” 24 25 70. After Plaintiff Kwatinetz stated that this was “starting to get to a bad place,” Defendant Sabi did not respond further. The following exchange took place: 26 27 28 - 21 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 Big3 Initiates Legal Action Against Sport Trinity 13 14 15 71. To protect their legal rights under the Unit Purchase Agreement, and to protect the rights of all of its other investors who fully funded and conducted themselves professionally and with dignity, Plaintiffs retained the services of a law firm which sent a 16 17 18 demand letter to Defendants on February 2, 2018. 72. Despite being repeatedly lied to, Plaintiffs in their February 2, 2018 letter still gave Defendants the opportunity to cure their breach and make the payment they owed since 19 July 2017. Plaintiffs provided wiring instructions to Defendant. Attached hereto as Exhibit 20 “A” is a true and correct copy of the letter. 21 73. Defendants, through their attorneys responded by letter on February 5, 2018, 22 and brazenly requested a further extension of time, claiming that Defendants were in 23 discussions with individuals at the BIG3. Attached hereto as Exhibit “B” is a true and 24 correct copy of the letter. 25 26 27 28 74. On February 11, 2018, Plaintiff responded through counsel, providing the history of nonpayment by Defendants, stating that the BIG3 was not in fact in communication with Defendants, and that Plaintiffs were now compelled to file legal action against Defendants. Attached hereto as Exhibit “C” is a true and correct copy of the letter. - 22 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 75. On or around February 14, 2018, Big3 commenced an Arbitration in JAMS against Sport Trinity LLC, In the Matter of Big3 LLC v. Sport Trinity LLC, JAMS Case No. 1100089671. Investigation of Defendants 4 5 commissioner to inform him about the Arbitration and the indisputable evidence supporting it. The since fired Commissioner stated he was “friends” with Defendant Sabi and 7 Defendant Al-Rumaihi and thus “did not want to get in the middle of it.” 9 HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 After commencing Arbitration, the founders of BIG3 reached out to its then 6 8 GERAGOS & GERAGOS, APC 76. 77. This statement by an employee getting the highest salary in the league plus stock was unsettling and raised significant alarm at the league offices, as the commissioner 10 and highest paid employee of the BIG3 should not have had a conflicted allegiance when 11 Defendants were refusing to pay and attempting to shakedown the league which, among 12 other things, paid the commissioner’s salary. 13 14 15 16 17 78. Worse yet, with knowledge that the BIG3 was in Arbitration against Defendants, the since fired Commissioner took to Instagram in February and March 2018 to post images of himself with Defendants at the Beverly Hills Mansion they recently rented and to post selfies at the mansion, with hashtags such as “More life less stress,” “#family,” and “#makingmoneymoves” 79. Here are just some of the photos posted on Instagram: 18 19 20 21 22 23 24 25 26 27 28 - 23 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 80. photographs posted on social media after the Arbitration, and the statements made by the BIG3’s former commissioner, the BIG3 initiated an independent investigation. 81. 4 5 6 7 As a result of the Arbitration filed by the BIG3 against Sport Trinity, the The purpose of the independent investigation was so that the BIG3 could gather facts and provide staff and employees a fair process to explain and discuss their conduct and relationship with Defendants and the State of Qatar. On or around February 22, 2018, the investigator sent the following letter to various executives and employees, including former Commissioner: 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 13 14 15 16 17 18 19 82. Although certain individuals declined interviews including Roger Mason and 20 Kai Henry, it was later learned that Defendants sought improper influence in the league by 21 (1) investing and attempted to invest in personal projects of now former employees, (2) 22 sought to bribe former employees, (3) providing former employees with gifts including trips 23 to St. Tropez and Ibiza, (4) providing the use of their $800,000 Bentley, (5) and using their 24 Beverly Hill mansions for lavish parties. 25 Defamation and Trade Libel Against Big3, its Founders, and its Players: 26 27 28 83. Following the Big3 filing Arbitration and initiating an independent investigation, Defendants were removed from all rights and privileges in the league. - 24 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 Regardless, Defendants continued to communicate with the now former employees, and sought to use these individuals (wittingly or unwittingly) to undermine the existing leadership in the league. 84. 4 5 6 HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 efforts to undermine the league. During the week the independent investigator was intending on conducting interviews, it was learned that the former Commissioner took a trip to China for business that was not related to the BIG3. He did not inform any of the executives at the 7 BIG3, some of who had spoken to him while he was in China, of his whereabouts. While in 8 China, he was in close communication with Defendant Sabi. 9 GERAGOS & GERAGOS, APC Through its own investigation, the BIG3 obtained email records reflecting 85. The BIG3 also came to learn that a player in the league named Jerome 10 Williams was also in China. At that time, Jerome Williams was an informal leader among 11 the BIG3 players and communicated on behalf of the interests of players to management. 12 Unlike the former Commissioner, Mr. Williams had no formal management role with the 13 BIG3. Mr. Williams considered himself to be a good friend of the Commissioner at that time. 14 15 16 17 86. On around March 7, 2018, while in China, the former Commissioner set up a phone call between Jerome Williams and Defendant Sabi. 87. On the call, Defendant Sabi falsely claimed (1) he and his partners were the lead investors in the Big3, (2) he and his partners had already paid $21.5 million to the Big3, (3) he and his partners wanted to give millions of dollars more to the BIG3 and to charities 18 19 20 affiliated with players, but that BIG3 and Jeff Kwatinetz and Ice Cube were preventing this from happening, (4) they had offered BIG3 $1.5 in additional funds for free to help promote the league during the All-Star weekend, and (5) he and his partners were now forced to sue 21 the Big3 which could destroy the league. Defendant Sabi did not disclose that he and his 22 partners actually owed the BIG3 millions of dollars and that, in fact, BIG3 had already filed 23 an Arbitration based on the nonpayment against Defendant Sabi and his partners. 24 88. In addition, Defendant Sabi (and, upon information and belief, with the 25 support of his co-conspirator Defendants) having found himself with no influence in the 26 league other than his connection to former Commissioner and other employees who were 27 given gifts, sought to retaliate against the BIG3. 28 - 25 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 89. Specifically, Defendant Sabi aided and abetted in the former Commissioner making the false allegation that Plaintiff Kwatinetz referred to African American players in the league according to a former employee as “Rich Nigg*s.” Defendant Sabi and former Commissioner recognized that such a statement was clearly false and defamatory, and thus 4 5 HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 90. The former employee they credited with hearing this was Kai Henry, who was 6 plied with gifts and vacations by Defendants, rode around in Defendant’s Bentley, and was a 7 frequent visitor to Defendants Beverly Hills mansion. Further, after being terminated, former 8 Commissioner and President repeated the allegation in a widely distributed press release 9 where he claimed a “former employee” heard the statement. 10 GERAGOS & GERAGOS, APC they claimed that although they never heard such a statement, a “former employee” did. 91. After his call with Defendant Sabi, Jerome Williams was instructed by former 11 Commissioner that they needed to call Chauncey Billups, a very influential retired NBA 12 player who plays in the BIG3. 13 14 15 16 17 92. communicating concerns between players and management in the BIG3. The purpose of this call was to communicate all the false and defamatory information that Defendant Sabi had just told Jerome Williams to Mr. Billups, with the intent by Defendant Sabi to remove Plaintiff Kwatinetz and Ice Cube from their leadership roles. 93. 18 19 20 21 Like Mr. Williams, Mr. Billups had an important informal role in Because Mr. Billups was busy, he requested that Jerome Williams send him an email of what Defendant Sabi had stated. Former Commissioner asked that he be blindcopied on the email to confirm what was stated was true, which he subsequently confirmed (falsely) to Jerome Williams after the email was sent. 94. Plaintiffs obtained a copy of the email during their investigation. Plaintiffs 22 also obtained a declaration from Jerome Williams stating why he wrote that email and what 23 former Commissioner and Mr. Sabi told him. Attached hereto as Exhibit “D” is a true and 24 correct copy of the declaration of Jerome Williams, confirming the defamatory statements 25 made to him by Defendants 26 27 95. Attached hereto as Exhibit “E” is a second declaration from Jerome Williams, wherein Jerome Williams – a friend of former Commissioner – confirms that he told him in 28 - 26 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 China that Kai Henry was the “former employee” who heard Plaintiff Kwatinetz call the BIG3 players “Rich Nigg*s.” 96. 3 Plaintiff Kwatinetz never had and never would make such a statement; he is married to a woman who is half black, and he has devoted his life to civil rights and equal 4 5 6 7 rights for all. Further, Mr. Kwatinetz has been a manager and trusted advisor to Ice Cube for decades who would not tolerate any form of intolerance. Indeed, Defendant Sabi intended for the false allegations to do maximum damage and create a leadership vacuum in the league. 8 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 9 97. However, in addition to the sheer absurdity of the allegations to everyone in the league and everyone who knows Plaintiff Kwatinetz, apparently Defendants and the 10 former commisioner were not aware that Kai Henry denied he heard Mr. Kwatinetz make 11 this statement. 98. 12 In fact, in text messages obtained between Kai Henry and Ice Cube, Kai Henry 13 states, “I never said that!!!” Here is the text message exchange between Ice Cube and Mr. 14 Henry: 15 16 17 18 19 20 21 22 23 24 99. Kai Henry did indeed have a conversation with Mr. Kwatinetz defending Mr. 25 Al-Rumaihi and saying he was a “good guy” and that he was simply being lied to repeatedly 26 by his partner Defendant Sabi so it wasn’t Defendant Al-Rumaihi’s fault. At this time, not 27 knowing Mr. Henry had been compromised by Defendants, Mr. Kwatinetz couldn’t 28 - 27 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 understand why a marketing employee not involved in BIG3 investor dealings would be inserting himself in to the conflict and asked him why Mr. Henry was doing so. 100. Mr. Henry replied that Mr. Al-Rumaihi thought he had been pushed out because he was an Arab. Mr. Kwatinetz explained that was absurd, that he had nothing 4 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 against people of Arabic background (or any for that matter) and that in fact other investors in the BIG3 were of Arabic heritage and that Mr. Kwatinetz constantly defended one of his well-known friends, Roger Waters, for his pro-Arabic views and negative ones regarding Israel because he supported people’s rights to have diverse views of all kinds. 101. Mr. Kwatinetz did say to Mr. Henry that Defendants were “bad people” but only because they failed to pay the millions they owed Big3, harmed players and the league, and then lied about paying on the lives of their children. 102. Mr. Henry blamed the non-payment on lies perpetuated by Mr. Sabi, but Mr. 12 Kwatinetz then ended the conversation letting Mr. Henry know they expected to find out the 13 truth as an independent investigation had just been opened and everyone would be 14 questioned on their relationships with the Defendants. 15 16 17 103. Arab sentiments (falsely) of Mr. Kwatinetz. Mr. Henry informed the independent investigator he would not be answering any questions. 104. 18 19 20 21 22 The very next day, Mr. Henry suddenly and suspiciously quit, blaming anti- Mr. Henry was not only a 12 year friend, but had worked with, and around, Mr. Kwatinetz during that time. Mr. Henry had always been complimentary and positive about Mr. Kwatinetz, and attended Mr. Kwatinetz’s wedding where he witnessed Mr. Kwatinetz’s wife being walked down the aisle by her black father, and Mr. Henry had witnessed Mr. Kwatinetz fight on behalf of minorities for over a decade. 105. In any event, it is clear that Mr. Henry and Mr. Mason were so compromised, 23 they could not even get their story straight about which absurd and defamatory remark to 24 make, without realizing the paper trail undermining the defamatory claims that was created. 25 106. The defamatory statements not only damaged Plaintiff Kwatinetz, but were 26 intended to and did in fact, cause severe and substantial damages to Ice Cube and all players 27 of the league who were also referred to as being racist and hostile, which was sadly repeated 28 - 28 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 4 in the media. Thus, each Plaintiff, including all players of the BIG3, maintain causes of action against all Defendants for defamation. FIRST CAUSE OF ACTION Defamation (On Behalf of Ice Cube, Jeff Kwatinetz, and Players Against All Defendants ) 5 6 7 8 9 GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 12 13 14 107. Plaintiffs claim that Defendants harmed them by making harmful and offensive statements that they were “racist,” “hostile,” and that Plaintiff Kwatinetz used the term “Rich Nig*as” to a former employee Kai Henry on several occasions. The statement was published by Defendants to numerous individuals as stated above, and through a press release and defamatory public relations efforts designed to “change the narrative” from the Defendants’ failure to pay Big3 what it owed under the Unit Purchase Agreement. 108. The individuals and public who received and heard the defamatory publications understood said publications to be about Plaintiffs, and to mean that Plaintiffs were racist, hostile, and used racial slurs. 109. Defendants made such statements with malice, in that they knew said 15 statements to be false, and intended the statements to cause grievous harm to Plaintiffs and 16 the Big3, in that the Big3 was founded on principles of diversity, inclusion, and equal 17 opportunity, and has a Board of Directors, staff, and employees composed primarily of 18 African Americans, females, and minorities. The statements by Defendants were intended to 19 create disunity and disruption in and to the league, and to investors and potential sponsors. 20 21 22 23 110. Defendants conduct was malicious, fraudulent, oppressive, and/or done with a reckless disregard for the rights of all Plaintiffs, thus giving rise to punitive damages. Plaintiff Kwatinetz specifically has represented minorities and diverse clients for his entire life and such defamation was intended to harm his ability to continue to do so. 24 25 26 27 28 - 29 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 SECOND CAUSE OF ACTION Defamation Per Se (On Behalf of Ice Cube, Jeff Kwatinetz, and Players Against All Defendants ) 3 4 statements that they were “racist,” “hostile,” and that Plaintiff Kwatinetz used the term “Rich 6 Nig*as” to a former employee Kai Henry on several occasions. The statement was published 8 9 10 HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 Plaintiffs claim that Defendants harmed them by making harmful and offensive 5 7 GERAGOS & GERAGOS, APC 111. 11 12 by Defendants to numerous individuals as stated above, and through a press release and defamatory public relations efforts designed to “change the narrative” from the Defendants’ failure to pay Big3 what it owed under the Unit Purchase Agreement. 112. The individuals and public who received and heard the defamatory publications understood said publications to be about Plaintiffs, and to mean that Plaintiffs were racist, hostile, and use racial slurs. 113. Defendants made such statements with malice, in that they knew said 13 statements to be false, and intended the statements to cause grievous harm to Plaintiffs and 14 the Big3, in that the Big3 was founded on principles of diversity, inclusion, and equal 15 opportunity, and has a Board of Directors, staff, and employees composed primarily of 16 African Americans, females, and minorities. The statements by Defendants were intended to 17 create disunity and disruption in and to the league, and to investors and potential sponsors. 18 114. Defendants conduct constitutes “Defamation Per Se,” in that the defamatory 19 statements related to matters incompatible with the business, trade, profession, or office of 20 Plaintiffs. Defendants conduct was malicious, fraudulent, oppressive, and/or done with a 21 reckless disregard for the rights of all Plaintiffs, thus giving rise to punitive damages. THIRD CAUSE OF ACTION Trade Libel (On Behalf of The Big3 Against All Defendants) 22 23 24 115. Plaintiffs claims that Defendants defamatory statements, as alleged above, 25 would be clearly and necessarily understood to disparage the league and the services and 26 products associated with the league. 27 28 116. Specifically, Defendants and each of them, in the effort to undermine the current Big3 leadership, falsely and absurdly told players and third-parties that the league - 30 FIRST AMENDED COMPLAINT FOR DAMAGES 1 2 3 was not being managed properly and not accepting their money, which is belied by the contemporaneous messages and records. 117. Defendants published said defamatory statements to individuals and for mass consumption with a coordinated defamatory public relations campaign. 4 5 6 7 8 9 118. Defendants intended to cause and did in fact cause financial harm with respect to Plaintiffs business relationships with third-parties. 119. Defendants knew the statements they made and caused to be made were false and defamatory. 120. Defendants conduct was malicious, fraudulent, oppressive, and/or done with a reckless disregard for the right of all Plaintiffs, thus giving rise to punitive damages. GERAGOS & GERAGOS, APC HISTORIC ENGINE CO. NO. 28 644 South Figueroa Street Los Angeles, California 90017-3411 10 11 FOURTH CAUSE OF ACTION 12 Intentional Interference with Prospective Economic Relations 13 (On Behalf of All Plaintiffs Against All Defendants) 14 121. Defendants were aware of numerous contractual relationships Plaintiffs entered 15 and/or intended to enter, including contracts with its former commissioner, investors, media 16 contracts, and sponsorship opportunities with third-parties. 17 18 19 20 21 122. Defendants made or aided and abetted in the making of defamatory statements of and concerning Plaintiffs with the intent of interfering and causing disruption with existing and prospective contracts entered by Plaintiffs, to which Defendants knew that disruption in the contractual relations was certain or substantially certain to occur. 123. Plaintiffs were damaged in the disruption of their contractual relationships. 124. Defendants were a substantial factor in causing Plaintiffs’ harm. 22 23 24 25 26 27 28 - 31 FIRST AMENDED COMPLAINT FOR DAMAGES GERAGOS 6f GERAGOS. APC HISTORIC ENGINE CO. No.28 644 SOUTH FIGUEROA STREET LOS ANGELES. CALIFORNIA 90017841 1 JE-UJN 125. Defendants conduct was malicious, fraudulent, oppressive, and/or done with a reckless disregard for the rights of all Plaintiffs, thus giving rise to punitive damages. WHEREFORE, Plaintiff prays for judgment as follows: 1. For general damages in an amount to be determined by proof at trial; 2. For special damages in an amount to be determined by proof at trial; 3. For punitive and exemplary damages against the defendants; 4. For pre- and post-judgment interest according to proof; 5. For costs of suit, including reasonable attorneys? fees, statutory fees, and costs as provided by statute; 6. Injunctive relief; 7. For all other relief as this Court may deem just and proper. DATED: April 6, 2018 GERAGOS GERAGOS, APC By: J. GERAGOS EN J. MEISELAS Attorney for Plaintiffs -32- FIRST AMENDED COMPLAINT FOR DAMAGES GERAGOS GERAGOS, APC HISTORIC ENGINE Co. No. 28 644 SOUTH FIGUEROA STREET Los ANGELES. CALIFORNIA 90017-341 1 DEMAND FOR JURY TRIAL Plaintiffs hereby demand a jury trial. DATED: April 6, 2018 GERAGOS GERAGOS, APC J. GERAGOS EN J. MEISELAS Attorney for Plaintiffs -33- FIRST AMENDED COMPLAINT FOR DAMAGES Exhibit Morgan Lewis Benjamin P. Smith Partner +1.415.442.1289 benjamin.smith@morganlewis.com February 2, 2018 VIA FEDEX AND ELECTRONIC MAIL Philip B. Schwartz, Esq. Akerrnan LLP 350 East Las Olas Boulevard, Suite 1600 Fort Lauderdale. FL 33301 Re: BIG3 Basketball, LLC Unit Purchase Agreement Dear Mr. Schwartz: We represent BIG3 Basketball, LLC We write to you pursuant to Section 7.3 of the BIG3 Basketball, LLC Unit Purchase Agreement (?Agreement?) by and between BIG3 and Sports Trinity, LLC (?Trinity") dated July 14, 2017. As Trinity knows, Trinity is in breach of Section 2 of the Agreement given its failure to pay BIG3 the complete up-front purchase price of $11,500,000 USD for Purchased Units in BIG3 by July 14, 2017 (exclusive of the ?Additional Revenue Guarantee"). Instead, to date, Trinity has paid just $7.5 million of the required amount, Despite repeated promises that Trinity?s $4,000,000 USD shortfall would be forthcoming, including by wire transfer prior to January 31, 2018, no monies have been received. Accordingly, BIG3 demands that Trinity remedy the shortfall by wiring the $4,000,000 past due and owing no later than midnight Eastern Time on Monday, February 5, 2018. BIG3 reserves all rights, and makes this demand without waiver of any rights or remedies. incerely, ?liegmin P7. 811% cc: Mark Geragos (via email) Jeff Kwatinetz (via email) O?Shea Jackson, Sr. (via email) Scott Karchmer (via email) Morgan, Lewis 8: Bockius LLP One Market Spear Street Tower San Francisco, CA 94105-1596 0 531/ 955279211 United States 0 +1.415.442.1001 Exhibit . gk?rman Philip B. Schwartz Akerman LLP Las Olas Centre ll, Suite 1600 350 East Las Olas Boulevard. Fort Lauderdale, FL 33301?2999 T: 954 463 2700 F: 954 463 2224 February 5, 2018 VIA E-MAIL AND FEDERAL EXPRESS Benjamin P. Smith, Partner Morgan, Lewis Bockius LLP One Market Spear Street Tower San Francisco, CA 94105 RE: BIG3 Basketball, LLC Investment by Sport Trinity, LLC (?Sport Trinity?) Dear Mr. Smith, I am in receipt of your letter of February 2, 2018. I have consulted with representatives of Sport Trinity, who have advised me of their ongoing discussions with BIG3 representatives regarding this investment and the future operation of BIG3. In order to allow that discussion to come to a conclusion, Sport Trinity requests that BIG3 agree to forbear on seeking to exercise any remedies with respect to the matter raised in your letter until Friday, March 9, 2018. Please let me know if that is acceptable. Sincerely, W4 iip B. Schwartz cc: Ayman Sabi (by e-mail) Ahmed Al-Rumaihi (by e-mail) 44018198; 1 Exhibit Morgan Lewis Benjamin P. Smith Partner +1.415.442.1289 benjamin.smith@morganlewis.com February 11, 2018 VIA FEDEX AND ELECTRONIC MAIL Philip B. Schwartz, Esq. Akerman LLP 350 East Las Olas Boulevard, Suite 1600 Fort Lauderdale, FL 33301 philip.schwartz@akerman.com Re: BIG3 Basketball, LLC Unit Purchase Agreement Dear Mr. Schwartz: 1 am in receipt of your February 5, 2018 letter requesting yet another extension of time for Sport Trinity LLC (?Trinity?) to address its admitted and ongoing breach of contract, this time seeking a further extension of time until at least March 9, 2018 to simply discuss (rather than cure) Trinity?s breach. BIG3 Basketball, LLC is perplexed by this reSponse given demand that Trinity?s breach be cured, following multiple extensions, no later than February 5, 2018. BIG3 cannot and will not grant yet another extension; it is done playing games. Contrary to your letter, Trinity is not in communication with BIG3 or its authorized agents, and has no basis in law or fact to request a further extension of time to pay monies due and owing as of July 14, 2017. BIG3 graciously and in good faith granted Trinity nearly seven months of opportunity to cure its breach. BIG3 did so based upon numerous promises of Trinity representatives after July 14, 2017 that monies due and owing would be received. But, over and over again those promises were broken. BIG3 detrimentally relied on Trinity?s repeated false representations. Ultimately, in or around November 2017, and in response to BIG3 Member Jeff Kwatinetz?s demand for payment from Trinity before year end, and during an in?person meeting with Trinity?s Ahmed Al-Rumaihi, Mr. Al?Rumaihi said to Mr. Kwatinetz, ?Look me in the eyes. I swear on my kid?s lives that you will have your money by mid-January to late?January [2018] at the latest.? Mr. Al?Rumaihi then proceeded to blame Trinity?s Ayman Sabi for Trinity?s failure to fund, but promised to do so himself if Mr. Sabi did not. Based on Mr. Al?Rumaihi?s representations and pleading, Mr. Kwatinetz, although stating Morgan, Lewis Bockius LLP One Market Spear Street Tower San Francisco, CA 94105-1596 0 +1.415.442.1000 956597482 United States 0 +1.415.442.1001 Philip B. Schwartz, Esq. February 11, 2018 Page 2 that BIG3 had no legal obligation to further extend Trinity?s funding deadline, graciously (albeit reluctantly) agreed to do so. However, Mr. Kwatinetz made it clear that January 31, 2018 would be the ?nal deadline. Mr. Kwatinetz also reminded Mr. Al?Rumaihi of Trinity?s obligation to secure $9 million in sponsorship deals, a separate obligation of Trinity under the Unit Purchase Agreement. Despite these representations, Trinity again failed to pay on or before January 31, 2018, causing further substantial harm to BIG3. Thus, on February 2, 2018, BIG3 again noti?ed Trinity, through my letter, of its material breach and warned that if amounts due and owing were not wired and received by BIG3 by midnight EST Monday, February 5, 2018, BIG3 would pursue all available remedies. Rather than wire the overdue amounts, Trinity?s representatives made unconscionable demands for additional BIG3 Units, as well as operating changes. Speci?cally, on February 3, 2018, at the memorial for a deceased friend of Mr. Kwatinetz and player in the BIG3 league, Mr. Al?Rumaihi made still more demands of Mr. Kwatinetz, contradicting other demands made by Mr. Sabi to CFO, and screamed at Mr. Kwatinetz in front of mourners and threatened that ?you don?t know who I know and what I?m capable of.? BIG3 takes these threats seriously. As noted in my prior correspondence, Trinity has left BIG3 no choice but to pursue all rights and remedies under its contract with Trinity, including but not limited to termination of Trinity?s claimed interest in BIG3 given its failure to pay for that interest (it has no interest), and pursuit of all amounts remaining due under the contract, including sponsorship monies. Please let us know if you will accept service of Notice of Initiation and Demand for Arbitration. Again, BIG3 reserves all rights and waives no rights. cerely, :egam??c?c?f min P. mith Mark Geragos (via email) Jeff Kwatinetz (via email) O?Shea Jackson, Sr. (via email) Scott Karchmer (via email) 031/ 956597482 Exhibit I JEROME WILLIAMS, DECLARE: I am a retired professional NBA player and I am currently a player with the Big3. On, or around March 7, 2018, was in China with Roger Mason Jr. On this date, and previously, Mason told me that Ayman Sabi was the lead investor in Big3, that Ayman Sabi and his investment group invested and paid $21 million to the BigB and that the Sabi investment group was the lead investor in the Big3. Mason told me that the Sabi investment group, which included Ahmed Al-Rumaihi, offered to pay charity $1.5 million and Big 3 interfered with and prevented this donation from being made. I suggested Shooting For Peace and they said yes. Mason told me that the Sabi investment group offered $1.5 million in addition to the $21 million they already paid for public relations around the 2018 NBA All Star Game but that the Big3 refused to take this money. Mason also told me that the Sabi investment group had made a lucrative deal for players (approximately 2.5m total, $80,000 minimum each player) in Dubai but that the BigB prevented this from happening. Mason also told me that individuals from the Big3 were wasting Big3 player money by, among other things, taking private jets. Mason had me call Sabi who confirmed what Mason told me about Sabi and the Sabi investment group?s position as lead investors in BigB and all of the statements Mason made, including their financial contributions to the league. Mason told me that Sabi and his investment group owed the BigS money and wouldn?t pay because the weren?t running the business right. Mason never told me that the Big3 filed for an Arbitration against Sabi and his investment group. Mason told me that the only legal claims that existed was that Sabi was going to sue Big3 and that this would destroy the league. Rather, Mason told me that Sabi and the Sabi Investment group were planning to sue the Big3 and that the Sabi lawsuit would destroy the league. Mason told me we needed to do something immediately to save the league. On or around March 7, 2018, Mason told me that we needed to speak with Chauncey Billups, who is a friend, and a retired professional NBA player who plays in the BigB who I understood to have an informal leadership role (as I myself have) in communicating important information between players and the Big3 management. On or around March 7, 2018, Mason, myself, and Mr. Billups had a three-way conference call so that Mason and I could convey the information about the Sabi investment group that Mason told me as well as the other issues outlined above in this declaration that Mason told me. Mason told me if we did not act fast and convey this information to other players, the Big3 would be destroyed. Qq/ On the call Mr. Billups said he was busy and asked that we put everything we were saying in writing. This is why I sent the email to Mr. Billups on March 7, 2018, which is attached to this declaration as Exhibit blind copied Mason on the email to make sure that I had accurately conveyed all of the facts that Mason told me about Sabi and the Big3. After I sent the email I spoke with Mason to confirm that my email was accurate. Mason stated that the email was completely accurate but stated that I should not have blind copied him using his Big3 email account. DECLARE THE FOREGOING TO BE TRUE AND CORRECT UNDER PENALTY OF PERJURY 018 WILLIAMS EXHIBIT From: Jerome Williams Sent: Wednesday, March 07, 2018 4:33 PM To: Chauncey Billups Cc: Jerome Williams Subject: BIG3 Issues: That need Answers CB, Here is what needs to be addressed with Jeff Cubell Let's coordinate a time that works best in the next couple of days. BIG3 Issues: That need Answers .0 so 3. . I spoke to Ayman (BIGB lead Investor $21 Million) (as I do every so often) and I touched base with him he asked me about how I felt about Roger being Commissioner of Big3?? He then expressed that the investors wanted to contribute $1.5 Million to our Shooting for Peace efforts for 2018 and was told not right now by Jeff that they needed it for operations?? Then he said that he had setup a sponsored AllStar game in Dubai that would have paid players $80,000 minimum for 2-days and it was turned down?? Then He also said Kai was let go from BIG3 and he might have something with lverson?? Then he said that they were only going to continue on with BIG3 if Jeff steps So things with BIG3 are at a Crossroad Players Coaches have heard bad things about their colleagues and feel ?used not compensated for their brand equityl! 0 Commissioner Roger Mason has to be involved with day to day operations. The players are losing trust for Jeff Ice Cube based on their playoff checks arriving late and now jersey royalty checks still haven?t arrived. And now Ayman?s situation could be real bad for the league. Allen lverson Jersey sold out and is the only player to receive a check. Need to see financials for 0 BIG3 What players represent us on the Board; who is responsible for approving all basketball related decisions? Players are requesting that there will always be Roger, Chauncey, Jerome and another Captain be named to the BOD. This would need to be done ASAP with a follow up BOD meeting done to inform us of all protocol, business process and operations. In addition to financial updates with regards to royalties, sponsors, salaries, budgets 2018 etc. for approval. - BIG3 Community initiative: Shooting for Peace in schools program partnered with NBRPA was started and there hasn?t been any correspondence to teams with this regard?? AllStar weekend launched and follow up was lack. $1.5 Million for initiative was proposed by Sent from my iPhone Moron I :l Exhibit I, JEROME WILLIAMS, DECLARE: I am a retired professional NBA player and I am currently a professional player with the BigS. It was Roger Mason Jr. that told me Kai had told him that Jeff referred to the BIGB players as ?Rich niggers.? He said this when was in China with him the week of March 7, 2018. I declare the foregoing to be true and correct under penalty of perjury. Dated:M 13,2018 Jerome Wilyaf?s