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A look at Graceland, the home of Elvis Presley, on May 22, 2024 in Memphis, Tennessee.
CNN  — 

Graceland can stay in the hands of Elvis Presley’s family for the time being, after a Tennessee court chancellor ruled Wednesday that a mysterious company trying to sell it likely committed fraud.

Chancellor JoeDae Jenkins said that a planned foreclosure sale of Graceland, Elvis Presley’s historic Memphis home, would be postponed at least until a future hearing determines who maintains rightful ownership of the estate. A bizarre series of events set the late singer’s granddaughter against a mysterious company that claimed Elvis’ daughter gave it Graceland’s deed.

A hearing in the Shelby County, Tennessee, Chancery Court determined that Thursday’s planned foreclosure auction of Graceland would irreparably harm Elvis’ granddaughter, Danielle Riley Keough, who sued to block the sale. Keough took ownership of the estate and popular tourist attraction after her mother and Elvis’ daughter, Lisa Marie Presley, died in January 2023.

“The estate is considered unique under Tennessee law, and in being unique the loss of the real estate will be considered irreparable harm,” Jenkins said.

Jenkins also said there was evidence that a company trying to foreclose on Graceland had forged documents that it claimed gave it the right to sell the property. After the hearing, a person who said he represented the company trying to foreclose said it would drop its claim.

In a statement, Graceland said the property will continue to operate.

“As the court has now made clear, there was no validity to the claims,” the statement read. “There will be no foreclosure.  Graceland will continue to operate as it has for the past 42 years, ensuring that Elvis fans from around the world can continue to have a best in class experience when visiting his iconic home.”

Karen Pulfer Focht/Reuters
Memphis attorney Jeff Germany, who is representing Riley Keough, granddaughter of Elvis Presley, leaves court after fighting the claim of a company which wants to force the sale of the famed Graceland mansion.

Who holds the rights to Graceland?

A company called Naussany Investments & Private Lending LLC had claimed that Lisa Marie Presley failed to pay back a $3.8 million loan it had given her – and Naussany said Presley had put up Graceland as collateral against the loan. Seeking repayment, it had scheduled an auction of the estate.

This was no typical foreclosure sale. Keough filed a lawsuit earlier this month, claiming there was no such loan. She also claims Naussany isn’t even a real company.

“These documents are fraudulent,” Keough’s lawsuit alleges. “Lisa Marie Presley never borrowed money from Naussany Investments and never gave a deed of trust to Naussany Investments.”

The lawsuit alleges Naussany Investments & Private Lending LLC “appears to be a false entity created for the purpose of defrauding.”

Although Naussany provided what appears to be a 2018 notarized promissory note signed by Lisa Marie Presley to put up Graceland as collateral, Keough’s lawsuit said that was a forgery. In a signed affidavit, the notary public denied ever notarizing anything that Lisa Marie Presley had signed.

Chancellor Jenkins said that affidavit was sufficient evidence to delay the foreclosure until a hearing can determine the facts. But Jenkins also said the evidence suggested Keough was telling the truth.

Karen Pulfer Focht/Reuters
A general view of the Shelby County Courthouse in Memphis, Tennessee, U.S. May 22, 2024.

“It appears you’ll be successful on the merits … provided you prove at the ultimate hearing fraud alleged by your client and the notary,” Jenkins said Wednesday.

Naussany said it is not going to proceed with its claim and “will be withdrawing all claims with prejudice,” according to a statement released today by a person identified as a representative of Naussany Investments & Private Lending LLC, the company accused of trying to fraudulently foreclose on the historic property.

“Due to the Deed of Trust not being recorded and the loan being obtained in different state, legal action would have to be filed in multiple states and Naussany Investments & Private Lending will not acquire to proceed,” the company said.. “That comes from consultation of the lawyers for the company. There was no harm meant on Ms. Keough for her mothers LMP mis habits and mis managing of money.”

Elvis Presley Enterprises, the company that manages Presley’s estate, concurred that Naussany’s claim was illegitimate.

“Elvis Presley Enterprises can confirm that these claims are fraudulent,” the company said. “There is no foreclosure sale. Simply put, the counter lawsuit has been filed is to stop the fraud.”

A judge last week granted a temporary restraining order, preventing Naussany from selling Graceland. Jenkins extended that order Wednesday.

An estate in dispute

Following Lisa Marie Presley’s death, Keogh and her grandmother, Priscilla Presley, fought over the rights to her estate – including Graceland. Ultimately, Keough and Presley settled, and Keough became Graceland’s sole owner.

In 2004, Lisa Marie Presley sold 85% of Elvis Presley Enterprises’ assets in a deal reportedly worth more than $100 million. But she maintained complete ownership of the Graceland mansion and Elvis’ personal items housed in what is now the Graceland museum, according to the Graceland website.

Graceland is one of the South’s biggest tourist draws, visited by hundreds of thousands of people each year, Graceland says on its website. Lisa Marie Presley annually earned seven figures from it, based on a court filing in her 2022 divorce.

Dimitrios Kambouris/Getty Images for The Met Museum/Vogue)
Riley Keough attends the 2024 Met Gala. Keough is suing to stop the forced sale of Graceland.

Who is Riley Keough?

Keough was born to parents Lisa Marie Presley and musician Danny Keough in 1989. She is a well-known actor, appearing in “Mad Max Fury Road” and other Hollywood hits. She also appears in Hulu’s “Under the Bridge.”

First credited as an actor in the movie the Runaways in 2010, Keough has racked up a number of acting roles. She recently starred in “Daisy Jones & The Six,” where she played a troubled musician in a band about to make it big.

In a piece for Vanity Fair, Keough revealed she has a daughter, Tupelo Storm Smith-Petersen, who was born via surrogate in August 2022. Elvis was born in Tupelo, Mississippi, in 1935, but Keough said the name is a tribute to her late brother, Benjamin Storm Keough, who died in 2020 at the age of 27.

CNN’s Lauren Mascarenhas, Raja Razek, Joe Sutton and Alli Rosenbloom contributed to this report.