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America August 30, 2024 2 mins read

Judge Reinstates Minority-Owned Certification for Ex-NBA Star’s Company

America ı By Rochdi Rais

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Ex-NBA Star’s Company lawsuit

A Michigan judge has ruled that Piston Group, a company owned by former Detroit Pistons star Vinnie Johnson, was wrongfully stripped of its minority-owned business certification by the Michigan Minority Supplier Development Council (MMSDC). The decision came after a three-week bench trial, where Wayne County Circuit Judge Annette J. Berry concluded that the company’s disqualification was unjust and driven by ulterior motives.

The court's decision mandates that Piston Group be recertified as a minority-owned business, reaffirming Johnson’s managerial control despite the presence of white executives in C-suite positions. Judge Berry criticized the MMSDC's actions, revealing that the decertification followed Johnson’s refusal to comply with a six-figure donation request from the certifying body. According to the judge, the certification standards were manipulated to disqualify Piston Group by imposing new, unfounded rules that required minority owners to delegate authority only to other minorities.

Judge Berry noted that Johnson, who is Black, remained deeply involved in the daily operations of Piston Group and held ultimate decision-making authority, meeting the necessary criteria for managerial control under the minority-owned business certification standards.

The ruling also addressed the significant impact that losing the minority-owned certification could have had on Piston Group’s business relationships with major automakers that prioritize supplier diversity.

The MMSDC has announced its intention to challenge the ruling, expressing strong disagreement with the court’s findings and voicing concerns that the decision could lead to ambiguity in the certification process for other minority businesses.

Piston Group, which had maintained its minority-owned status through a preliminary injunction since May 2021, celebrated the ruling as a complete vindication of its position. The court also ordered the MMSDC to cover Piston Group’s legal costs associated with the litigation.

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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