The countersuit alleges LaVar Ball embezzled over $2.5 million from the family-owned companies.
Big Baller Brand co-founder Alan Foster has countersued LaVar and Lonzo Ball for fraudulent concealment and breach of contract, The Blast reported on Wednesday.
In legal documents obtained by the outlet, Foster is accusing LaVar of embezzling over $2.5 million from the family-owned companies and exploiting his own children for personal wealth and fame. Foster alleges LaVar diverted and spent company money to fund his own extravagant lifestyle.
"In early 2016, in furtherance of LaVar’s intense desire to share in, or rise above, the glory and spotlight of his sons, LaVar approached Alan and asked for his business guidance on how to monopolize and gain fortune and fame from the names and likenesses of his three sons," the document reads. "In response, Alan suggested that the two men brand the “Ball” family name in order to create basketball and entertainment-related businesses. LaVar loved Alan’s idea and wanted to make sure that he was the biggest star in the family, notwithstanding the fact that he was broke, had no savings, poor credit and zero business acumen.
"LaVar is a liar who fraudulently utilized BBB and BSG to fund his personal lifestyle," it adds.
In April, Lonzo sued Foster for allegedly utilizing a "fraudulent scheme" to take money from the company, claiming that Foster took money from Big Baller Brand "to purchase assets in Ethiopia as a means of, among other things, secreting stolen funds." Lonzo is suing for damages in excess of $2 million.
The lawsuit came in light of ESPN's report that revealed Lonzo was missing $1.5 million from his personal and business accounts. According to the report, suspicions were first raised in October 2018, when Lonzo's financial advisor alleged that his personal taxes and Big Baller Brand taxes could not be completed on time due to the missing funds.
Foster previously owned 16.3% of the company. Lonzo owns 51, while LaVar and Lonzo's mother Tina own 16.4 and 16.3, respectively.