U.S. Regulation

Crypto Class Action Against Mark Cuban and Dallas Mavericks Dismissed

A cryptocy class action lawsuit alleging Mark Cuban and the Dallas Mavericks defrauded investors by promoting the now-bankrupt crypto lender Voyager Digital has been dismissed. “The complaint asserted claims under various state securities laws and consumer fraud statutes,” Cuban and the Mavericks’ legal team at Brown Rudnick said in a statement. “On December 30, the U.S. District Court for the Southern District of Florida Judge Roy K. Altman dismissed the matter in its entirety.”

The lawsuit claimed Cuban misrepresented Voyager multiple times prior to its filing for Chapter 11 bankruptcy protection in 2022. “Mr. Cuban and the Dallas Mavericks are extremely pleased with this ruling. Judge Altman dismissed the case, stating that the plaintiffs have no recourse to refiling in the USDC-SDFL,” said Steve Best, partner and chair of Brown Rudnick’s White Collar Defense, Investigations & Compliance Practice Group.

At the time of Voyager filing for bankruptcy, it had approximately $1.3 billion of crypto assets on its platform. Voyager’s demise was part of a broader market downturn triggered by the collapse of the Terra blockchain, which erased about $40 billion in market value and ultimately led to founder Do Kwon receiving a 15-year prison sentence earlier this month.

Terron Gold

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