Crypto Promotion Lawsuit Against Billionaire Mark Cuban and Dallas Mavericks Tossed
A US federal choose threw out a crypto investor lawsuit in opposition to Mark Cuban and the Dallas Mavericks, ending a case that attempted to pin Voyager Digital’s collapse on celebrity-style promotion and group advertising.
Judge Roy Ok. Altman of the US District Court for the Southern District of Florida stated in an order dated Friday that the plaintiffs failed to determine private jurisdiction over Cuban and the group, and the court docket lacked a adequate connection between Florida and the alleged promotion.
Cuban’s Personal Investment Remarks Drew Legal Scrutiny
The swimsuit, filed in 2022, argued that Cuban pushed followers towards Voyager’s interest-bearing accounts after he stated at an Oct. 2021 Mavericks information convention that he had personally invested within the firm.
It additionally pointed to a Mavericks submit that supplied $100 in Bitcoin to prospects who downloaded Voyager’s app, opened an account, deposited $100, and made one commerce.
Cuban’s legal professionals argued the Florida court docket had no jurisdiction over Cuban or the group, and stated he warned folks to watch out with their cash.
Voyager Once Held Billions Before 2022 Bankruptcy
Brown Rudnick, which represented Cuban and the Mavericks, stated Judge Altman dismissed the case with out prejudice after years of litigation and jurisdictional discovery, including that nationwide promotions didn’t quantity to purposeful focusing on of Florida residents underneath the state’s lengthy arm statute and due course of limits.
“We couldn’t be extra happy with absolutely the proper outcome,” Steve Best, lead counsel for Cuban and the Mavericks, reportedly told ESPN.
“I believe that the plaintiffs will think about submitting in one other jurisdiction. … I sit up for defending Mark and the Mavericks in any jurisdiction on this nation. “Mark doesn’t settle when he believes he’s on the best aspect of the regulation.”
The case sits inside a broader wave of lawsuits aimed toward athletes and celebrities who promoted crypto platforms that later failed, together with Voyager, which filed for chapter in July 2022.
Voyager reportedly held greater than $5B in property in 2021 and counted almost 3.5M traders earlier than its collapse.
Cuban has since sold his majority stake within the Mavericks to on line casino magnate Miriam Adelson.
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