This post has been updated to note that in a motion to dismiss, the defendants noted that Clary dropped the racial discrimination allegations.

Former Penn State men’s basketball guard Kanye Clary claims he was a victim of intimidation, retaliation, slander, and the illegal use of his name, image, and likeness in a lawsuit as part of his suspension in February 2024.

The suit was filed in the Philadelphia County Court in November but was transferred to the U.S. Middle District Court on Tuesday. Clary sought damages for defamation, racial discrimination, unjust enrichment, and unreasonable restraint of trade — which alleges the defendants conspired to reduce Clary’s NIL value to near zero and refused to properly deal with him.

In a motion to dismiss filed by the defendants, Penn State said Clary has voluntarily agreed to dismiss the racial discrimination claim.

The defendants listed in the suit are Penn State, head coach Mike Rhoades, Happy Valley United, Success With Honor NIL Inc., Blueprint Sports and Entertainment, and up to 10 other unnamed individuals and corporations.

The motion to dismiss filed the defamation claims against Rhoades and Penn State; unjust enrichment against Penn State, Happy Valley United, Success with Honor, Blueprint; and all other claims against all defendants.

According to the lawsuit, Clary said the suspension was retaliation for speaking out against various injustices players face from the coaching staff. The suit states that Clary’s dismissal was on “unfound and meritless grounds.”

Clary also argues that the Penn State legal council informed Clary’s father, Anthony Clary, that Rhoades was not to make any judgments until all sides were reviewed but Clary was dismissed before explaining his side, per the lawsuit.

Clary also accuses Rhoades of spreading false narratives that he improperly missed classes and was failing his classes. The suit says Clary missed classes due to a concussion he suffered in a game in January 2024 and that he had one excused incomplete videography assignment due to the symptoms of his concussion.

Clary claims that he received a low level of care for his concussion and Rhoades used the injury to “find ways to further punish Kanye.”

The suit states that when Clary began to express concerns about preferential treatment, he began to receive unfair treatment and was targeted by Rhoades and other Penn State coaches.

Clary said other members of the team had more absences than him and many players who violated team rules were never reprimanded. Clary also claims that coaches and players were overheard making derogatory statements about him behind his back and that Rhoades slandered Clary to an outside coach, who then contacted Clary’s father and informed him of the slander.

The suit alleges that the slander by the defendants led to Clary being faced with a hostile environment, cyberbullying, ostracizing, limitation on the use of facilities, damage to reputation, and financial loss. It also says that Rhoades spread rumors that Clary was going to leave Penn State because he refused to sign an NIL agreement and when Clary did enter the transfer portal, Penn State placed his portal documentation incorrectly and other coaches resorted to sending Clary messages via his personal Instagram account.

Clary also says he had to use family connections to get teams to take him in the portal because Penn State coaches spread a false narrative to “get Kanye blackballed.”

As for the NIL side, Clary claims Penn State, the university’s NIL collective Happy Valley United, and Success With Honor NIL illegally used his name, image, and likeness to receive donations without his permission when Clary did not have an NIL deal at that time.

Three days later, Rhoades allegedly sent a contract between Clary and Blueprint Sports and Entertainment that would have paid Clary much less than he was due. Clary refused to sign the contract and claims the retaliation against him escalated.

Clary averaged 16.7 points, 2.8 assists, and 2.9 rebounds per game in 2024 but those stats dropped off in his first season with the Mississippi State. He averaged 6.3 points, 2.6 assists, and 1.3 rebounds per game with the Bulldogs.

The suit says the events led to him restarting at a school that was unfamiliar with his abilities and it derailed his career. It also says that Clary suffers from anger, resentment, and depression due to what he went through at Penn State.