TGR Staff | Photo Via Jesse Iwuji Motorsports - 12/12/2022
According to a post on the African American Racers Association (AARA) website, Jesse Iwuji Motorsports, a NASCAR Xfinity Series team, has filed a $4.125-million lawsuit against Equity Prime Mortgage alleging breach of contract. The suit claims that the Atlanta-Based mortgage lender failed to make more than $4 million in sponsorship payments after the company received a margin call from its investors.
The race team, founded in 2021 by NFL Hall of Fame running back Emmitt Smith and NASCAR driver Jesse Iwuji, entered into a contract with Equity Prime Mortgage in November 2021, according to documents submitted as part of the lawsuit. The records show that the home lender agreed to pay $2.25 million in the contract’s first year, starting in December 2021, and that sponsorship would increase to $3.75 million in the second year, beginning in December 2022.
The initial lawsuit was filed on December 5th at a U.S District Court in Florida but would be dismissed on December 7th without prejudice for failing to “properly allege the parties’ complete diversity of citizenship, meaning that the Court lacks sufficient information to satisfy the jurisdictional inquiry” according to the judge. The judge asked that the race team file a new complaint that properly sets forth the basis for jurisdiction, no later than Dec. 12.
The suit also claims Equity Prime Mortgage continued to take advantage of its status as a sponsor of the NASCAR Xfinity Series team and made promotional posts on social media, which featured the company’s logo on the Jesse Iwuji Motorsports team race car.
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