Investor accuses George Karl’s media startup of impropriety

George Karl's Denver podcast company sued

Former Denver Nuggets coach George Karl, shown at the Pepsi Center in Denver in 2008, co-owns a sports podcast company called Truth+ Media. (John Leyba/The Denver Post)

A sports podcast company co-owned by former Denver Nuggets coach George Karl is being sued by its financiers, who accuse it of funneling money to Karl and others.

Truth+ Media was founded by four men in Denver last year: Karl, his son Coby, Brett Goldberg and Mikey Goldenberg. Funding came from Fullerton Investors in Chicago.

And it is Fullerton that sued Truth+ and Goldberg in Denver District Court on Monday.

The company, which owns a stake in Truth+ and has a seat on its board of directors, alleges Goldberg, as CEO, used Fullerton’s $335,000 investment to pay himself $130,000, and pay Karl $35,000, all without the board’s approval.

“Brett Goldberg acted intentionally and in bad faith when he engaged in such self-dealing,” the lawsuit alleges.

It also accuses Goldberg of hiding Truth+’s finances from Fullerton, which is supposed to have access to the podcast company’s balance sheets and income statements.

“The lack of any information regarding Truth+’s financial status has damaged and continues to damage Fullerton in that Fullerton has no ability to determine whether its capital contributions have been squandered,” the lawsuit claims.

In an email Wednesday, Goldberg declined to comment at the advice of his attorney, Tracy Ashmore with the Colorado law firm Robinson Waters & O’Dorisio.

Karl, who was inducted into the Basketball Hall of Fame last weekend and hosts the “Truth + Basketball” podcast, is not a defendant. The lawsuit, filed by attorney Edward Stewart with the firm Wheeler Trigg, repeatedly misspells his name as “George Carl.”

George Karl's Denver podcast company sued

Former Denver Nuggets coach George Karl, shown at the Pepsi Center in Denver in 2008, co-owns a sports podcast company called Truth+ Media. (John Leyba/The Denver Post)

George Karl and two others were improperly paid $295,000 by Truth+ Media, according to a lawsuit filed in Denver this week.

You must be a member to access BusinessDen's exclusive reporting.

Your subscription has expired. Renew now by choosing a subscription below!

For more information, head over to your profile.

Profile


SUBSCRIBE NOW

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING AARON@BUSINESSDEN.COM.

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.




Return to Homepage

112281