Mark Cuban and the Dallas Mavericks scored a big legal win when a federal judge dismissed a class-action lawsuit on Friday. The lawsuit centered on cryptocurrency lender Voyager Digital, which went bankrupt in 2022.
Investors in Voyager Digital sued claiming Mark Cuban and the Mavericks violated state securities laws and consumer fraud statutes. They also claimed Cuban repeatedly misrepresented Voyager Digital by engaging in “false representations and other deceptive conduct.”
The Mavericks promoted Voyager Digital’s services through their fan base after Voyager Digital signed a five-year contract with the team. Crypto News Australia reports that at the time it sought bankruptcy, Voyager reported about $1.3 billion in crypto assets on its platform.
In accepting the motion to dismiss the lawsuit, Judge Roy Altman of the United States District Court for the Southern District of Florida stated the plaintiffs “failed to establish personal jurisdiction” over Cuban and the Mavericks.”
The judge also, according to The Street, stated the plaintiffs “did not demonstrate that Cuban or the Mavericks “carried on a business or business venture in Florida.” Mark Cuban does own property in the state. Altman also said that the plaintiffs did not prove that Cuban and the Mavericks targeted Florida residents directly.
“Invoking conspiracy jurisdiction here might make more sense if this suit were against Voyager,” the judge wrote. “But it’s not. Cuban and the Mavericks are our sole defendants. And the Plaintiffs don’t argue that Voyager is the relevant co-conspirator here.”
Voyager investors are now expected to sue in another state. Former NFL player Rob Gronkowski, former NBA player Victor Oladipo, and NASCAR driver Landon Cassill also previously faced allegations as defendants, but they reportedly settled.
“We couldn’t be more pleased with the absolute right result. I suspect that the plaintiffs will consider filing in another jurisdiction,” Steve Best, lead counsel for Mark Cuban and the Mavericks, told ESPN. “I look forward to defending Mark and the Mavericks in any jurisdiction in this country. Mark doesn’t settle when he believes he is on the right side of the law.”
