Shilo Sanders, a University of Colorado safety, is owed more than$ 11 million by security guard John Darjean, who filed a bankruptcy lawsuit against him on Thursday.
Judge Michael Romero half granted Sanders ‘ request to dismiss Darjean’s petition, which alleges Smith cheated on account of using the limited liability companies to avoid paying. Romero, however, advanced some of the situation to pretrial discovery by rejecting some of Smith ‘ action.
As Sportico late detailed, Smith was found guilty in 2022 for assault and battery stemming from an event in 2015 when Sanders was 15 years older. Darjean claimed Sanders attacked him in a hall at a school, causing both his thoracic spine and permanent neurological harm. Darjean was identified as the attacker, but Sanders did not appear in the Texas test. A judge ordered Smith to give Darjean$ 11.89 million.

Sanders—whose nephew, Shedeur, and parents, Deion, are the Cattle ‘ QB and head coach, respectively—petitioned for relief under Chapter 7 of the Bankruptcy Code last year in hopes it would delay and release his obligation to pay Darjean. Although Sanders ‘ so-called NIL valuations claim his NIL exceeds$ 1 million, his bankruptcy petition depicted a more modest account with annual NIL earnings that are closer to$ 200,000.
In his 13- site decision, Romero held that, at this stage in the dispute, he don’t dismiss the case based on Sanders ‘ use of utterly- owned LLCs, Big 21 and SS21, for his NIL income. As Sanders tells it, he is not a group to those NIL deals. Instead, his LLCs are parties, so Sanders’ debt does not apply to his contracts because they are not considered home. Darjean rejects that bill. He demands that the judge remove the commercial veil, claiming that Sanders’ alter ego is the only one the LLCs are.
Romero wrote that judges “disagree” about when to penetrate the veil. Some are willing to complete it “on equal grounds” to “address instances where a debtor has used business entities that he or she dominates to unlawfully hide assets from creditors.” However, other courts are unwilling to grant such an act, including because there is n’t enough textual support for it.
As for this case, Romero refused to “rule out application of the alter ego or veil piercing doctrines” —a win for Darjean. The judge emphasized how Darjean “faces a great problem” at trial because penetrating is an “extraordinary treatment,” but in speech that favors Sanders.
Additionally, Romero had a mixed opinion of Sanders ‘ claim that Darjean had lied about his fraudulent intent. The judge found that Darjean’s problem includes certain arguments regarding Sanders ‘ NIL right, his NIL deals, music tools, vehicles and other assets. Additionally, he noted that the necessary information was included in the news reviews and YouTube videos about Sanders and his brothers purchasing a home and giving it to their father.

Romero was more critical of Darjean’s description of Sanders using NIL contracts and LLCs to transport rights. Darjean was held accountable by the judge for not conducting a thorough investigation into Sanders ‘ says.
Romero has given Darjean until June 27 to submit a revised objection to address deficiencies.
The two parties will be able to obtain digital records and testimony from the other as the case progresses to judicial discovery. Given their relations to Smith ‘ NIL and other income, his family members are likely witnesses.