Judge Rules Against Deion Sanders’ Son Shilo In Bankruptcy Case

A judge has denied Deion Sanders’ son Shilo in his attempt to dismiss a $11 million debt complaint by a former school security guard. The ruling is part of Sanders’ ongoing bankruptcy case.

The complaint, made by John Darjean, alleges that Sanders owes him from a 2015 incident. Sanders, who was 15 years old at the time, “snapped” and assaulted Darjean as he tried to take Sanders’ phone as directed by school authorities. The alleged assault left Darjean with permanent injuries, according to USA Today. A default judgment for $11.89 million was granted in 2022 after Sanders failed to appear in court.

Sanders filed for bankruptcy in October 2023 to avoid the hefty payout to Darjean. However, the plaintiff alleges that Sanders unlawfully concealed his assets through his LLCs. According to Darjean’s legal team, these LLCs are “alter-egos” and “shams” of Shilo that are holding his NIL interest. The claim holds “sufficient allegations,” according to Judge Michael Romero over the ruling.

“The Complaint contains sufficient allegations that [his] companies function as his alter egos and that the corporate veils of the LLCs should be pierced,” explained Judge Romero.

He added, “This Court is unwilling, at this stage of the proceedings, to rule out application of the alter ego or veil piercing doctrines…The Court therefore denies Sanders’s request to dismiss Darjean’s … claim purely on the basis it might involve assets owned by Sanders’s LLCs. However, the Court cautions Darjean that reverse piercing is considered an ‘extraordinary remedy’ and he faces a high burden to demonstrate all necessary factors at trial.”

However, Sanders’ defense called the claims made by Darjean “inaccurate.” His attorneys declared it prevents the collegiate athlete from a “fresh start” at life.

Based on this ruling, the trial should proceed as Sanders aims to move forward with his bankruptcy. However, Sanders must also deal with an additional complaint from Darjean. The January filing argues the debt should still be in place due to Sanders’ “willful and malicious conduct.” Both complaints are currently active.

RELATED CONTENT: Shilo Sanders Faces Scrutiny Over Income Disclosure Amid Bankruptcy Filing Linked To $11.8 Million Judgment

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