A lawsuit accusing billionaire entrepreneur Mark Cuban and the NBA team Dallas Mavericks of defrauding investors by promoting a now-bankrupt cryptocurrency company was dismissed ahead of New Year’s Day.
Relief For Mark Cuban
The plaintiffs claimed that Cuban and his team had misled investors about Voyager Digital, a cryptocurrency lender that went bankrupt in 2022. The case was filed under various state securities laws and consumer fraud statutes.
In a Dec. 30 filing, the U.S. District Court for the Southern District of Florida, under Judge Roy K. Altman, dismissed the case in its entirety, stating that the plaintiffs failed to establish the theory of “personal jurisdiction.”
The plaintiffs have no opportunity to refile the case in the same court, Altman ruled.
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The Fallout From Voyager’s Collapse
The lawsuit charged Cuban with promoting what the investors have described as “an unregistered and unsustainable fraud” related to the Mavericks’ sponsorship arrangement with Voyager.
Investors also filed a lawsuit against the National Basketball Association, alleging losses of $4.2 billion due to their partnership with the cryptocurrency company.
Voyager declared bankruptcy in 2022 after experiencing a liquidity crisis, followed by an enforcement action against the CEO, Stephen Ehrlich.
Cuban sold his majority stake in the Mavericks in 2023 and currently holds a 27% ownership.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Kathy Hutchins / Shutterstock.com
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