A federal judge has dismissed a 2022 lawsuit that accused former Dallas Mavericks majority owner Mark Cuban and the NBA franchise of misleading investors into opening accounts with the now-bankrupt crypto firm Voyager Digital.
In an order issued last Friday, U.S. District Judge Roy K. Altman of the Southern District of Florida ruled that the plaintiffs failed to establish personal jurisdiction over Cuban or the Mavericks, ending the case in that court.
The suit alleged that Cuban encouraged fans to deposit funds with Voyager when he told reporters at an October 2021 Mavericks news conference that he had personally invested in the company. Soon after, the team used social media to promote a deal offering $100 in free Bitcoin to users who downloaded the Voyager app, opened an account, deposited $100 and executed one trade.
Cuban’s legal team argued that he had cautioned consumers to be careful with their money, contended that Voyager’s assets did not qualify as securities subject to strict promotion rules, and maintained that the Florida court lacked jurisdiction over both Cuban and the franchise.
“We couldn’t be more pleased with the absolute right result,” Steve Best, lead counsel for Cuban and the Mavericks, said Wednesday. “I suspect that the plaintiffs will consider filing in another jurisdiction. … Mark doesn’t settle when he believes he is on the right side of the law.”
Attorneys representing the plaintiffs did not respond to requests for comment.
Former NFL tight end Rob Gronkowski, ex-NBA guard Victor Oladipo and NASCAR driver Landon Cassill were previously named as defendants in the Voyager case but have already reached settlements. The lawsuit was among several filed against athletes and celebrities who promoted cryptocurrency platforms that later collapsed.
Cuban has since sold his controlling stake in the Mavericks to casino operator Miriam Adelson.
Source: ESPN
