Letitia James Announces New Lawsuit

New York Attorney General Letitia James announced a new lawsuit she filed against the National Collegiate Athletic Association (NCAA) on Wednesday.

James was thrown into the spotlight after suing former President Donald Trump for business fraud. New York Judge Arthur Engoron ended up siding with James and ordered Trump to pay $355 million plus interest and barred him from doing business in New York for three years. Trump has maintained his innocence and appealed Engoron's decision.

In a separate lawsuit filed on Wednesday, James, along with the attorneys general of Florida, Washington D.C., Virginia and Tennessee, challenged a rule from the NCAA that restricts "prospective student athletes' ability to earn money and benefit from their name, image, and likeness (NIL)" by preventing them from "reviewing NIL compensations offers before enrolling in a school," according to a press release from James's office.

The NCAA is a member-led organization that regulates student athletics. There are currently 1,098 college and universities and 102 athletic conferences in its membership. NCAA members ultimately decide which rules and policies are adopted.

The NIL policy that the lawsuit refers to has been in effect since July 2021 and is a "short-term action," according to the NCAA.

"As the NCAA continues to work with Congress to adopt federal legislation to support student-athlete use of NIL, it is necessary to take specific, short-term action with respect to applicable NCAA rules," the organization said on its website regarding its Interim NIL Policy.

However, in February, U.S. District Judge Clifton L. Corker ordered the NCAA to refrain from enforcing its "Interim NIL Policy, the NCAA Bylaws, or any other authority to the extent such authority prohibits student-athletes from negotiating compensation for NIL with any third-party entity..."

The lawsuit seeks to "require the NCAA to drop its rule banning the use of NIL as a recruiting incentive," according to James's news release.

"New York student athletes are some of the best in the country, and they should be able to make decisions about their athletic career without restrictions," James in the release.

"The NCAA's NIL rule limits college athletes' potential and restricts competition among universities – that's not fair game. Student athletes should be able to call the shots on their career fairly and evenly. I am proud to join this lawsuit to continue fighting for fair treatment of student athletes."

The NCAA said in an emailed statement to Newsweek on Wednesday: "Turning upside down rules overwhelmingly supported by member schools will aggravate an already chaotic collegiate environment, further diminishing protections for student-athletes from exploitation.

"The NCAA fully supports student-athletes making money from their name, image and likeness and is making changes to deliver more benefits to student-athletes, but an endless patchwork of state laws and court opinions make clear partnering with Congress is necessary to provide stability for the future of all college athletes."

The lawsuit was initially filed by the attorneys general of Tennessee and Virigina in late January before New York, Florida and Washington, D.C., joined.

Tennessee Attorney General Jonathan Skrmetti welcomed the newly added plaintiffs on X, formerly Twitter, on Wednesday.

Washington, D.C., Attorney General Brian Schwalb replied to Skrmetti: "The NCAA's restrictions on how prospective and current college athletes can benefit from potential business opportunities are anticompetitive and illegal. So, alongside TN, NY, FL, and VA, we're suing to protect college athletes in DC and across the country."

Update 5/2/24, 9:22 a.m. ET: This article has been updated with additional information and comment from the NCAA.