You guys know MJ was screwed out of money(royalties) from Lakai for over a year? He could've easily sued and bankrupt the brand, but didn't. Instead he just found a new sponsor who would actually pay him what they are supposed to.
Yeah, I think its probably a stretch to say if this allegation is true he would bankrupt the company. Lawsuits of royalty payments are difficult, they almost always settle if there is real injury, and MJ would only really be able to sue for what he was owed for the alleged 1 year loss of royalty payments. Which I would guess is much less than crailtap going bankrupt.
But more fundamentally, that is fucked if he lost royalty payments.