Geragos claims he doesn’t know coach involved in Avenatti Nike extortion scheme

In a cross complaint, a Los Angeles attorney accused of being Michael Avenatti's co-conspirator in an effort to extort Nike Inc. said a youth basketball coach is at least partly responsible for his own damaged reputation and financial losses.

The coach, Gary Franklin, sued Mark J. Geragos last fall with the purported aim of holding the attorney accountable for allegedly helping Avenatti with a $25 million extortion scheme. In July, U.S. District Judge Paul G. Gardephe in New York sentenced Avenatti to 30 months in prison for threatening to publicly accuse Nike of bribing young basketball players. Gardephe noted that Geragos suffered no consequences despite his participation in the scheme, which included holding a meeting with Avenatti and Nike representatives in his New York office.

In his amended complaint, Franklin blamed Geragos' participation in the scheme for causing him to lose a $1.5 million settlement from Nike, damaging his reputation in the basketball community, missing out on thousands of dollars in coaching revenue, and losing sponsorships and a reality TV opportunity about his work.

Geragos countered in his cross complaint that these harms were wholly or partly caused by Franklin's own negligence, as well as Franklin's "agents," who are not identified. Franklin v. Geragos, 20STCV37797 (L.A. Super. Ct., filed Oct. 1, 2020).

If Franklin recovers a judgment against him, Geragos added, then he himself "is entitled to a judgment over and against [Franklin], for [his] fair share of [Franklin's] judgment and/or an equitable apportionment of liability for [his] role in causing or contributing to the damages."

Holly Baird, a spokesperson for the attorney, said in an email Thursday that "Mr. Geragos did not know Gary Franklin Sr., never met Gary Franklin Sr. and certainly, never represented Gary Franklin Sr. let alone committed any wrong upon Mr. Franklin."

Franklin's attorney, Browne George Ross O'Brien Annaguey & Ellis LLP partner Trent Copeland, said he has not been served with the cross complaint and does not comment on pending litigation. But, he said, "If the defense is based on the premise that the attorney never met Mr. Franklin - I would just defer to the comments of federal judge Gardephe, who said, 'Mr. Geragos purported to represent Mr. Franklin.'"

In a hearing in August, Copeland told Los Angeles Superior Court Judge Michael L. Stern he didn't believe it would be reasonable for Geragos' attorneys "to file a good faith cross complaint." Copeland also described any such attempt as a "delay tactic."

According to his complaint, Franklin reached out to Avenatti in March 2019 after Nike terminated a sponsorship contract with his basketball program. The complaint said Avenatti contacted Geragos, who had a close relationship with Nike's general counsel, to help him extort Nike using the confidential information he learned from Franklin.

Nike offered to settle Franklin's sponsorship claims for $1.5 million, but "Geragos and Avenatti balked at any deal that did not include a personal payout to them of tens of millions of dollars," Franklin's complaint said.

Because Geragos agreed to work with Avenatti to discuss Franklin's settlement, the coach's complaint said, "Geragos agreed to be associated as an attorney on Plaintiff's case and an attorney-client relationship was formed between Geragos and Plaintiff. Geragos thereby owed fiduciary duties of care, loyalty, and good faith to Plaintiff as a client."