Shortly after owner Mark Walter decided to sell his majority stake in the Los Angeles Lakers, Dodgers president Stan Kasten had a message for worried fans: “The Dodgers are not being sold.” But now, the waters around Walter’s empire have suddenly gotten murkier, making fans queasy again.

Turns out, that just days after reportedly selling his stake in Chelsea, Walter is facing a new class-action lawsuit over his insurance business.

“Los Angeles Dodgers owner Mark Walter is the subject of a class-action lawsuit alleging multiple insurance companies he owns hid an ongoing federal investigation from customers while funneling those customers’ money into Walter’s other companies,” The Athletic reported.

With Chelsea already off his sports portfolio, Walter still has several major properties under his umbrella, including the WNBA’s Los Angeles Sparks, the Professional Women’s Hockey League, and Cadillac’s F1 team. But the Dodgers remain his most prominent sports holding.

The suit was filed in a Florida federal court. It accused Walter and his insurance entities, such as Delaware Life Insurance Company, Clear Spring Life, TWG Global, and Guggenheim Partners, of misleading customers.

The complaints contain nine allegations, including fraudulent concealment, breach of contract, and aiding and abetting fraud. It seeks at least $5 million in damages and could cover “tens of thousands” of annuity holders across the country.

They allegedly secretly funneled billions of dollars from policyholders’ premiums into a fund used to finance Walter’s private business network and sports purchases instead of safe, low-risk investments.

This is in addition to the previous accusation that Mark Walter intentionally misled regulators.

He committed fraud by misclassifying “affiliated assets” (loans made to his own companies) as “unaffiliated.”

According to US law, insurance companies notify regulators of the investments they have made in entities affiliated with the insurer.

In the case of Delaware Life and Clear Spring, they invested around 42% of the investors’ money in companies affiliated with Walter’s different entities, but reported only 3%. The worst part was that the lawsuit claims that this diverted policyholder money was used to help fund the $2.15 billion purchase of the Dodgers in 2012, as well as a majority stake in the Lakers in 2025.

Lakers have no more investments from Walter. It is the Dodgers that will face the sweet chin music, considering they owe over $1 billion in deferred money to nine players through 2047.

The accused companies, though, dismissed the suits.

They claimed the discrepancy was an internal labeling error. Still, the investigations are ongoing and suggest a few more revelations going forward.

“Each of them was sold an annuity by an insurer that already knew it was under federal criminal investigation for the very asset classification it was representing, and each of them lost a costless right of return while that fact was withheld,” the latest lawsuit by 67-year-old Ira Rosner of Florida states.

It was also revealed that financial irregularities claims against Walter are nothing new.

Back in 2014, two policyholders filed a suit.

They claimed Walter and Dodgers co-owner Todd Boehly used their companies “as a cash machine to buy the most expensive sports franchise in world history, the Dodgers, with over a billion dollars in policyholders’ funds.”

The suit was dropped within a day, likely due to a swift settlement. The forensic accountant on the case noted that the outcome was “beneficial for the plaintiffs,” hinting at a rapid financial resolution before the case could go deep into discovery. This time, though, the reality is different.

For example, Delaware Life corrected its reported exposure to Walter-tied businesses from a mere 3% up to 42%, amounting to roughly $17 billion. The 2026 lawsuit remains active because it is backed by concrete evidence from active federal investigations and newly admitted financial restatements.

However, with legal turmoil looking like getting over the head for Walter, the Dodgers may be the one to face the heat.

The Dodgers may have to bear the brunt

Since Mark Walter’s ownership in 2012, the Dodgers’ on-field stories have been all about dominance. They won 13 of the past 14 NL West titles and three World Series championships in the previous six seasons. The Dodgers maintain one of the highest payrolls each year and are already being accused of “ruining” baseball with their financial muscle.

In 2026, the Dodgers are leading the chart in terms of average fan attendance in their games, averaging 49,910 fans per game. One of the main reasons for such popularity is their star-studded clubhouse.

With names like Shohei Ohtani with deferred payment till 2043, Mookie Betts till 2044, and Blake Snell till 2046, the Dodgers’ ownership issue will create a storm in MLB.

“I can tell you from the guy running the team, knowing how the business runs and what it can support in terms of revenues and expenses,” Kasten added. “The Dodgers aren’t going anywhere.”

“The Dodgers have the highest revenue in baseball,” Walter’s TWG Global stated. “And it significantly exceeds the team’s obligations to its players.”

The Dodgers are indeed the first baseball team to generate over a billion dollars in revenue in a single season. However, Walter giving up on the Lakers and Chelsea indicates an uncomfortable reality. And with the Dodgers’ owner facing newer allegations, Kasten’s word seems not reassuring enough.