NBA Stares Down $4.2B Lawsuit over Ties to Collapsed Crypto Lender Voyager
Summary:
The National Basketball Association (NBA) is dealing with a proposed class-action lawsuit over its affiliations with collapsed crypto lender Voyager Digital. The lawsuit, filed in Miami District Court, accuses the NBA of gross negligence for endorsing Voyager's deals with the Dallas Mavericks, resulting in reported losses of over $4.2 billion for Voyager users. This development follows a similar lawsuit earlier this year against ex-Dallas Mavericks owner, Mark Cuban. The NBA and Voyager's law firm, McCarter & English, have yet to respond.
A looming class-action lawsuit is threatening the National Basketball Association (NBA) over alleged questionable advertising arrangements with the defunct crypto lender Voyager Digital. Voyager's clients argue that these partnerships led to a devastating loss of over $4.2 billion. This suit, filed in a Miami District Court on February 6th, exceeds 100 pages and accuses the NBA of being "egregiously careless" in endorsing Voyager's marketing collaboration with the Dallas Mavericks. The suit alleges the NBA's significant responsibility was to act as a 'guardian' in these dealings.
The objective of this litigation is to hold the NBA accountable, according to the plaintiff consortium. The broad endorsement of Voyager's unrecorded securities by the NBA allegedly makes it answerable for the resulting damages. The claimants additionally suggest that the NBA willfully accepted the hazards of collaborating with crypto exchanges like Voyager, Coinbase, and FTX, bagging billions in promotional compensations during a hard time marked by deserted stadiums and massive television revenue losses caused by the COVID-19 pandemic.
Mentioned in the lawsuit are also Voyager's legal consultants McCarter & English. The complaint suggests that the law firm exploited its reputation to issue a supposedly counterfeit 'legal opinion' insisting that Voyager's token wasn't an undeclared security, aiming to alleviate apprehensions of prospective investors and allies regarding the legality of Voyager's dealings.
A legal confrontation has previously arisen this year where the same consortium sued Mark Cuban, the Dallas Mavericks’ ex-owner. The plaintiffs alleged Cuban endorsed Voyager and made misleading safety assertions, which Cuban disputes. Investigations in connection to this lawsuit have consequently brought NBA and McCarter & English into the litigation scope.
The NBA and McCarter & English haven't responded yet to this latest situation. Meanwhile, this news follows a series of lawsuits filed against high-profile personalities and organizations, post the fall of FTX, who had partnerships with crypto firms. This includes Mercedes' F1 Team, the Major League Baseball, NFL star Tom Brady, NBA player Steph Curry among others.
Published At
2/8/2024 8:45:00 AM
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