The lawsuit claims Knight licensed her name and memorabilia to her son, Shanga Hankerson, in 1999 for use in connection with the Gladys Knight’s Chicken and Waffles restaurants.
Court documents say that in 2009, Knight considered ending the agreement altogether due to what she perceived as mismanagement, but instead entered a verbal agreement, which was contingent on Hankerson protecting Knight’s name and reputation.
The lawsuit mentions both a state investigation and struggling business operations.
Authorities raided metro Atlanta locations of the resturants in June and arrested Hankerson on charges of theft and racketeering.
Hankerson is accused of stealing more than $650,000 in sales and withholding taxes. With penalties and interest, he would owe more than $1 million.
In February one location scored a 56 on an inspection. It passed with a 90 on its re-inspection.
The restaurants are under new management following Hankerson’s arrest.
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