RAJ Sports, the investment vehicle run by the Bhathal family, has sued the Cherng family for allegedly violating a one-year exclusivity pact while the Portland Trail Blazers were up for sale.
The complaint, filed in Oregon state court, contends that Andrew and Peggy Cherng—founders of the Panda Express restaurant chain—signed a confidentiality and exclusivity agreement when they agreed to join RAJ Sports’ bid for the NBA franchise. The pact barred the Cherngs from pursuing any deal involving the Blazers or contacting other potential sellers or investors without RAJ Sports’ written consent for 12 months.
According to court documents, RAJ Sports maintained efforts to outbid Tom Dundon’s group even after the Allen estate announced a tentative sale agreement in mid-August. During that time, RAJ Sports says it “worked feverishly” to finalize equity commitments from its co-investors, including the Cherng family.
The lawsuit states that in late August the Cherngs’ attorneys abruptly informed RAJ Sports that they were ending talks. Alex Bhathal then phoned Andrew Cherng and directly asked whether the Cherngs were joining Dundon’s consortium—an accusation Cherng denied, the complaint says.
On September 12 the sale to the Dundon group closed, and the Cherng family appeared on the finalized investor list, prompting the legal action.
RAJ Sports seeks a temporary restraining order and a preliminary injunction to block the Cherngs from finalizing or exercising their investment. A hearing on those requests is scheduled within weeks. If the court grants either measure, Dundon’s group would have to pause its ownership transition or replace the Cherngs; if denied, the family may proceed but could face monetary damages should the Bhathals ultimately prevail. A full trial could extend through the remainder of the year.
Source: Hoops Rumors
