Jesse Iwuji Motorsports, a NASCAR Xfinity Series team, has filed a $4.125-million lawsuit against Equity Prime Mortgage, one of the team’s sponsors.
In the lawsuit, the team alleges that Equity Prime Mortgage committed a breach of contract by failing to pay the agreed $2.25 million for sponsorship in the 2022 season and $3.75 million for 2023.
The lawsuit attempts to collect what Jesse Iwuji Motorsports calls two missed payments totaling $375,000 from 2022 and $3.75 million for 2023.
The team was founded by AARA Hall of Famer Jesse Iwuji, NFL Hall of Famer Emmitt Smith, and a group of investors.
The lawsuit claims that an Equity Prime Mortgage executive informed the team in September 2022 that Equity Prime Mortgage was dealing with problems because of rising mortgage rates and that Equity Prime Mortgage could not make any more payments to Jesse Iwuji Motorsports.
According to the lawsuit, Jesse Iwuji Motorsports sent Equity Prime Mortgage a Notice of Intent to terminate the sponsorship agreement after the payment due Oct. 1 was missed. However, the suit claims Equity Prime Mortgage “took no action” after Jesse Iwuji Motorsports offered 30 days to fix the situation.
The suit also claims Equity Prime Mortgage continued to take advantage of their 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.