Chiefs' Rashee Rice Faces Shocking New Lawsuit in Breached $1 Million Settlement Allegation

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Chiefs' Rashee Rice Faces Shocking New Lawsuit in Breached $1 Million Settlement Allegation originally appeared on Athlon Sports.
DALLAS - A jury trial date is set for Kansas City Chiefs wide receiver Rashee Rice in light of his involvement in the frightening car crash in Dallas that involved six vehicles.
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Now, a new lawsuit is being filed against Rice in this incident's aftermath for failure to pay the terms of a settlement contract, according to attorney Marc C. Lenahan.
According to the suit details, Rice and the plaintiff had reportedly signed a "Mediated Settlement Agreement" of $1 million on April 5 that, Lenahan says, Rice has not paid by the contract's deadlines. Rice was ordered to pay half of the settlement as an initial installment and the second half 30 days thereafter.
Neither payment was made, per the suit.
Rice's team allegedly wanted the contract confidential, but he is now being sued for a breach of the contract.
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"And,'' Lenahan tells Athlon/ArrowheadReport.com, "since he did not uphold his side of the contract, he lost his confidentiality," Lenahan said.
This settlement stems from when the second-year receiver Rice, 25, was driving a rented Lamborghini Urus on Dallas' Central Expressway alongside SMU wide receiver Theodore Knox, 21, who was driving in a Corvette, causing an accident that left at least seven people injured. The incident occurred the Saturday before Easter in 2024.
Police said Rice hit speeds of 119 miles per hour. He then allegedly fled the scene of the accident without rendering aid, and without providing his name or insurance.
'Honestly, it's still a legal process and my team is handling that,' Rice said of this situation earlier this offseason. 'It's a legal process and my team is handling it off the field for me.'
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Rice also faces one count of aggravated assault, one count of collision involving serious bodily injury and six counts of collision involving injury.
Rice could potentially face a punishment from the NFL in the form of a suspension, but the league has not taken any action yet.
Rice's court date is set for January 20, 2026. It is conceivable that because the court date is slated for after the completion of the 2025 NFL season that the league will wait until the legal process takes place.
Another aspect of this contract's cooperation was Rice's recovery from a torn LCL ligament in his knee suffered early in the 2024 season that forced him to miss the rest of the year.
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The initial plan was for Rice to continue through the 2024 season, then be handed any league-issued suspension following the case being settled. His injury halted that idea and delayed much of the Dallas PD investigation, which has pushed everything back to where we are now.
The latest development with his breached contract makes the situation that much more difficult for the defendant Rice. ... though there may be a method to his madness.
Rice is playing in the third year of a four-year, $6.4 million deal. But if he's got this $1 million owed .. and maybe others ... he may not have the cash to fulfill his agreements. A bank loan? That might come at a high rate.
So it could be argued that he's cheating the system by delaying his promise to when he has the cash from a future contract.
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Rice has done all of his offseason work - on the field with the Chiefs - this offseason in preparation for training camp and another run at the Super Bowl.
'Honestly, you know, focusing on the main thing right now,' he said. 'The main thing for me is being able to be the best person I can be for my team so we can all come together and dominate."
"Things come with growth. I'm going to continue to grow.'
Related: Rashee Rice Suspension Update Reveals Timeline Details
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This story was originally reported by Athlon Sports on Jul 7, 2025, where it first appeared.