MEMPHIS, TN, May 21: Riley Keough, actress, and granddaughter of Elvis Presley, is taking legal action to prevent the sale of Graceland, the iconic home of her late grandfather in Memphis, Tennessee.

Keough inherited Graceland and a significant portion of Presley’s estate following the death of her mother, Lisa Marie Presley, last year. However, the mansion is now embroiled in a legal dispute with Naussany Investments, a company claiming the property was used as collateral for a $3.8 million loan taken out by Lisa Marie, which allegedly remains unpaid.

Keough, best known for her role in Amazon’s Daisy Jones & The Six, contends that the loan documents are fraudulent, asserting that her mother’s signature was forged. She has filed a legal motion to stop a planned auction of the estate scheduled for Thursday.

Elvis Presley Enterprises, which manages Graceland and the assets of the Elvis Presley Trust, supports Keough’s stance, stating that the loan never occurred and that Lisa Marie did not sign the documents. "Elvis Presley Enterprises can confirm that these claims are fraudulent. There is no foreclosure sale. Simply put, the counter lawsuit has been filed to stop the fraud," the group declared in a statement.

Keough's legal claim argues that the proposed sale would be "non-judicial" and based on paperwork that violates Tennessee law. A hearing is set for Wednesday, according to court documents.

Elvis Presley purchased Graceland in 1957 and resided there until he died in 1977. In the early 1980s, the 14-acre estate was transformed into a public music history theme park, attracting around 600,000 visitors annually.

Naussany Investments has yet to publicly respond to the allegations.