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Greater Sacramento Urban League Files Lawsuit Against Black Star Universal For Return Of $300K Investment – AfroTech

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The Greater Sacramento Urban League (GSUL) has filed a lawsuit in hopes of recovering a six-figure investment.

According to the Sacramento Business Journal, GSUL has sued Black Star Universal LLC and its founder, venture capitalist Kwame Anku. Black Star Universal is the investment arm behind the Black Star Fund, which has raised millions to support Black founders. GSUL invested $300,000 in Black Star Universal in April 2023, and now GSUL is asking for the funds to be returned.

GSUL CEO Ken Barnes shared the intentions of the funding, which was deployed before his appointment in April 2025, succeeding Dwayne Crenshaw.

“This was prior to my involvement with the organization,” Barnes said, according to the Sacramento Business Journal. “Partnering with the Black Star Fund would help GSUL do two things: support Black entrepreneurs and create an additional funding stream beyond donations to support our mission.”

Barnes first learned about the $300,000 investment three days into his role as CEO, but did not see much “information about the condition or performance of the fund,” or further documentation such as a referenced schedule, notes the outlet. The lawsuit, filed in Sacramento County Superior Court, resulted from claims that Black Star failed to provide financial statements after being asked in 2024 and early 2025.

“The only thing I know is that GSUL invested $300k for 1.2 percent ($25 million valuation), and that he (Anku) decided to close the fund in early 2025, but never sent GSUL notice,” Barnes explained, per the Sacramento Business Journal.

The outlet reports that, after facing a $1.5 million deficit, GSUL reduced its workforce, cutting 15 of its 53 full-time positions. GSUL hoped to use the $300,000 to help minimize job cuts.

“We wouldn’t have been able to save all the roles we eliminated, but wanted to use a portion of the $300,000 to cover three positions. Which is why there was an urgency for the end-of-fiscal-year return of capital,” Barnes explained.

On May 20, Barnes said he met with Anku, and they agreed to dissolve their relationship, with Anku returning the $300,000 investment by June 30, 2025, the outlet notes.

“These claims are baseless,” Anku said, per the Sacramento Business Journal. “Black Star Universal proactively offered to return GSUL’s full purchase amount by the end of the year, and that timeline was communicated clearly. GSUL chose to file a lawsuit before the agreed-upon timeframe. We respect GSUL and the work they do. It appears a leadership transition may have contributed to a misunderstanding, and we are working to resolve this matter professionally and in good faith.”