Commanders Face Second Lawsuit From D.C. Attorney General

The lawsuit states that the team “cheated” residents by not returning security deposits to season-ticket holders.

District of Columbia Attorney General Karl A. Racine announced Thursday the filing of a second lawsuit against the Commanders.

The lawsuit filed Thursday regards the Commanders “cheating District season ticket holders” out of deposits they made and never received refunds. The team has allegedly not refunded those season ticket-holders whose contracts had already expired, and the total racks up to nearly $200,000, the lawsuit claims.

“Commanders executives seem determined to lie, cheat, and steal from DC residents in as many ways as possible,” Racine tweeted. “We’re holding them accountable.”

Today, we are filing a new lawsuit against the Commanders—this time for cheating District season ticket holders out of their deposits.

Commanders executives seem determined to lie, cheat, and steal from DC residents in as many ways as possible. We’re holding them accountable.

— Archive: AG Karl A. Racine (@AGKarlRacine) November 17, 2022

The lawsuit states that the Commanders’ misleading business practices regarding the security deposits violated D.C.’s Consumer Protection Procedures Act.

The Commanders released a statement following the news of the lawsuit Thursday, noting that the team has not accepted premium ticket security deposits in 20 years, and they have not accepted suite security deposits in over 10 years.

The Commanders also said that they started returning security deposits back in 2004, and then 10 years later sent notices to those who still had deposits that needed to be returned. Per the statement, team management was told to return the deposits based on the comprehensive review that year.

“The team engaged an outside law firm and forensic auditors to conduct an extensive review of the team’s accounts which found no evidence that the team intentionally withheld security deposits that should have been returned to customers or that the team improperly converted any unclaimed deposits to revenue,” the Commanders’ statement read, via ESPN.

This lawsuit comes one week after Racine filed another suit against the Commanders, owner Dan Snyder and NFL commissioner Roger Goodell regarding the parties deceiving D.C. residents about an investigation into toxic workplace culture within the team.

Racine’s office began investigating the franchise around the time the U.S. House Committee for Oversight and Reform wrote a letter to the Federal Trade Commission in April concerning alleged financial improprieties. The congressional committee has been investigating alleged workplace misconduct within the franchise since October 2021.

The congressional committee’s investigation has been centered around sexual misconduct and financial impropriety claims. The investigation began after committee chairwoman Rep. Carolyn B. Maloney (D-N.Y.) and Rep. Raja Krishnamoorthi (D-Ill.) demanded Goodell to turn over the findings from attorney Beth Wilkinson’s investigation. Wilkinson began her investigation into the Commanders in August 2020, and though it was completed 10 months later, the findings were never publicly released. Washington was fined $10 million as a result of the Wilkinson probe.

The House Committee for Oversight and Reform’s investigation is reportedly coming to an end shortly when Republicans gain majority in the U.S. House of Representatives.

Along with NFL and congressional investigations, ESPN reported a couple weeks ago that the Eastern District of Virginia’s U.S. attorney’s office launched a criminal probe into the alleged financial wrongdoings. On that same day, Nov. 2, team owners Dan and Tanya Snyder announced they had hired Bank of America to potentially sell the team.

There is still one ongoing investigation looking into the Commanders being completed by former U.S. attorney and ex-Securities and Exchange Commission chair Mary Jo White, per the Associated Press.

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