Ballmer looks to dismiss fraud lawsuit over illegal Kawhi payments

Steve Ballmer's attorneys are asking to dismiss a lawsuit claiming the Los Angeles Clippers owner participated in fraud by paying star Kawhi Leonard through defunct sustainability startup Aspiration, referring to the allegations as "sensational" and "patently false" in court documents obtained by ESPN's Baxter Holmes.

Eleven Aspiration investors initially filed a lawsuit in July 2025 against co-founder Joseph Sanberg and others at the company, alleging they were defrauded of millions. Ballmer was not originally listed as a defendant.

Aspiration filed for bankruptcy last March, and Sanberg agreed in August to plead guilty to defrauding investors and lenders of more than $248 million.

However, subsequent reporting by journalist Pablo Torre suggested that Ballmer's $50-million investment in Aspiration was an attempt to circumvent the NBA's salary cap by paying Leonard through the third-party company. The investors subsequently filed a revised complaint in November that named Ballmer as a defendant.

"Plaintiffs would not have invested and/or kept their investment in (Aspiration) if Ballmer and Sanberg had disclosed the true nature of Ballmer's investment," the Nov. 3 complaint said, per Holmes. "Ballmer thus supported and participated in Sanberg's fraud."

Ballmer and the Clippers denied making illicit payments to Leonard, calling the allegations "absurd" and denying knowledge of any agreements between the two-time Finals MVP and Aspiration.

Ballmer added that he himself was "conned" by Aspiration and worked with the company under the impression it was a legitimate up-and-coming business.

"I understand that Mr. Ballmer and his attorneys deny our claims, but the facts speak for themselves and overwhelmingly support our case," one of the plaintiffs' attorneys, Skip Miller, told Holmes.

"They are laid out in detail in our lawsuit. I'm not going to repeat them here. We're going to litigate this case in court and not the press."

Ballmer's representatives asked for the case to be dismissed and asked the Los Angeles County Superior Court to determine the suit did not allege sufficient facts for a legal claim. A hearing is scheduled for March 9.