The Greater Sacramento Urban League is back in court, asking a Sacramento County judge to enforce a roughly $300,000 settlement it says Black Star Universal and founder Kwame Anku have failed to honor. The nonprofit frames the latest move as a push to recover money it invested to support Black entrepreneurs and stabilize its own programs.
According to the Sacramento Business Journal, new court filings claim Black Star Universal and Anku did not follow through on a repayment agreement reached earlier this year. The Urban League is now asking the court to enter judgment and let it collect on that settlement, following earlier litigation over the same $300,000 investment.
Court Filing Traces the Dispute
Court records show the original complaint was filed on Nov. 18, 2025, and includes claims such as breach of contract, alleged misrepresentations and breach of the implied covenant of good faith and fair dealing. As reflected in documents posted on Trellis, the filing lays out the Urban League's position that the investment terms and return schedule were not honored.
How the Investment Unfolded
The Greater Sacramento Urban League says it invested $300,000 in Black Star Universal in April 2023 as part of an effort to back Black founders and create a revenue stream that did not rely solely on donations. AfroTech reported that interim CEO Ken Barnes said the investment predated his tenure and that the nonprofit later found little documentation regarding the fund's performance. AfroTech also reported that GSUL was facing about a $1.5 million deficit that led to staff reductions.
Repayment Timeline and Enforcement
GSUL says it met with Anku on May 20 and that the parties agreed to end their relationship, with Anku returning the full $300,000 by June 30, 2025. The nonprofit says that date came and went without repayment. The Sacramento Business Journal reports that the new filing asks the judge to enforce the settlement that followed the earlier lawsuit.
Black Star founder Kwame Anku has pushed back on the allegations, calling them "baseless." In a statement reported by AfroTech, Anku said Black Star had "proactively offered to return GSUL's full purchase amount by the end of the year" and that both sides were working to resolve the matter professionally and in good faith.
Legal Implications
The complaint seeks damages and declaratory relief and lists specific contract and return-agreement claims against Black Star and Anku. Documents available on Trellis show GSUL's attorneys depicting the dispute as a contractual fight over an unreturned purchase amount and alleged misrepresentations.
The Urban League says the investment was meant to expand support for Black entrepreneurs and reinforce its programs. GSUL's website outlines work in workforce development, youth services and homeownership initiatives. Recovering the $300,000, the nonprofit says, could free up resources for operations while the organization waits for the court to act. The group details its community role and local services on the Greater Sacramento Urban League site.
For now, the case continues on the civil calendar, and any enforcement will depend on the judge's review of the motion and supporting documents. The Urban League says it intends to keep pressing for recovery through the courts, while Black Star maintains it is working toward what it describes as an orderly resolution.
