Laettner and Davis have been involved in the West Village redevelopment project in Durham. Former tobacco warehouse and factory buildings were converted into apartments and retail space.
It's not the first time they've been sued over loans. In 2007, a New York investor filed suit in federal court claiming non-payment of a $200,000 debt.
Laettner and Davis were co-captains of the Duke University men's basketball teams in 1991 and 1992, when they won national championships. Laettner played in the NBA for the Miami Heat before retiring in 2005.