It is not unusual to pick up the sports section of the local newspaper or log onto a favorite website and read a story about how a professional athlete who was paid millions of dollars over the course of their career is filing for bankruptcy due to a failed business venture or simple overspending. While these stories are fairly common -- and always a bit sad -- it is important that those doing the reporting have the correct facts, as the failure to do so can lead to potential legal consequences.

To illustrate, consider the recent case of Chicago Bulls great and six-time National Basketball League champ Scottie Pippen.

According to reports, Pippen has officially filed a lawsuit against multiple media outlets and other parties -- including the CBS Corporation, Comcast Corporation, General Electric and Arizona State University, among others -- for negligence, false light and defamation.

The problem?

The defendants allegedly falsely reported via their websites that Pippen, 46, had filed for bankruptcy.

Some of the specific examples cited by Pippen's lawsuit -- filed in the U.S. District Court in Chicago and seeking at least $9 million in damages -- include:

  • On April 26, 2011, CNBC.com published an article entitled "15 Athletes Gone Bankrupt," which read in part "Pippen's successes on the court couldn't stop him from losing career earnings worth $120 million, including more than $4 million for a corporate jet that was grounded just months after he bought it."
  • On January 26, CBS Sports.com published an article entitled "Money a problem for a lot of former players," which included a large photo of Pippen

Pippen's lawsuit indicates that he "never filed for bankruptcy and indeed has a substantial net worth, which has not been less than approximately $40 million in the last 10 years."

Stay tuned for further updates on this very interesting story ...

Remember, virtually anyone can experience financial problems due to circumstances beyond their control. Regardless of your financial situation, contact an experienced legal professional to learn more about your rights and your options under Chapter 7 bankruptcy or Chapter 13 bankruptcy.

This post is for informational purposes only and is not to be construed as legal advice.

Sources:

The Chicago Sun-Times, "Scottie Pippen files suit against those who said he filed for bankruptcy" Dec. 13, 2011

Fox Sports, "Pippen sues about bankruptcy reports" Dec. 13, 2011