Leonard case, Ballmer seeks dismissal: “False allegations”
Steve Ballmer is asking the court to dismiss the lawsuit accusing him of bypassing the NBA salary cap to pay Kawhi Leonard. His attorneys call the claims unfounded and built on media speculation.
The legal battle involving Steve Ballmer, owner of the Los Angeles Clippers, is entering a decisive phase. Attorneys for the American billionaire have formally filed a motion to dismiss the lawsuit accusing him of taking part in an alleged financial fraud tied to Kawhi Leonard’s contract, rejecting the claims as “sensationalistic” and “manifestly unfounded.”
At the center of the case is Aspiration, a green banking company that collapsed in March 2025, along with a series of investments and sponsorships that, according to the plaintiffs, were designed to circumvent the NBA salary cap.
The investors’ lawsuit and fraud allegations
The lawsuit was initially filed on July 9, 2025, by 11 Aspiration investors, who claim they were defrauded out of millions of dollars by co-founder Joseph Sanberg and other company executives. At first, Ballmer was not named as a defendant.
That changed after a series of investigations by journalist Pablo Torre, which alleged that Ballmer’s investment in Aspiration was part of a parallel payment mechanism for Kawhi Leonard, operating outside NBA regulations.
Based on those reports, on November 3, 2025, the investors submitted an amended complaint, adding Ballmer as a defendant.
According to the filing:
The investors would never have invested in, nor maintained their investment in Aspiration, had Ballmer and Sanberg disclosed the true nature of the operation.
Investors
The Leonard connection and overlapping deals
Attention has focused on a tight sequence of agreements. In September 2021, the Clippers and Aspiration announced a $300 million, 23-year partnership, including naming rights and sponsorships tied to the new Inglewood arena. That same month, Ballmer invested $50 million in the company.
Four months later, in April 2022, Aspiration signed Kawhi Leonard to a four-year, $28 million sponsorship deal. A former Aspiration employee, speaking anonymously to Torre, said the agreement was designed “to get around the salary cap.”
Ballmer’s defense strategy
In the filing submitted Monday, Ballmer’s attorneys forcefully rejected all accusations, arguing that his name was added to the lawsuit:
In the investors’ attempt to recover funds from anyone with the ability to pay.
Ballmer’s attorneys
According to the defense, there is no evidence of any agreement between Ballmer and Sanberg to evade NBA rules. On the contrary, the attorneys argue that Ballmer himself was a victim of the fraud, having lost his investment in Aspiration.
The filing is particularly blunt toward media sources:
Unsupported conjecture and speculation may belong in a podcast, but not in a legal complaint.
Ballmer’s attorneys
Responses and the ongoing proceedings
The investors’ attorney, Skip Miller, is not backing down:
The facts speak for themselves and overwhelmingly support our claims. This case will be litigated in court, not in the press.
Skip Miller
On the other side, Torre has reiterated confidence in his reporting, citing thousands of internal documents and testimony from former employees who allegedly confirmed the existence of a hidden scheme.
One fact is already settled: Joseph Sanberg has reached a plea deal, pleading guilty in October 2025 to two counts of wire fraud, each carrying a potential sentence of up to 20 years in prison. Sentencing is scheduled for February 23, 2026.
What comes next
Ballmer’s attorneys are now asking the court to rule that the complaint lacks sufficient grounds to establish wrongdoing and to dismiss the case. A hearing is scheduled for March 9, 2026, at the Los Angeles County Superior Court.
Meanwhile, the Clippers and Ballmer continue to deny any violation of the NBA salary cap, stating they are fully cooperating with the league’s investigation.