Crypto Promotion Lawsuit Against Mark Cuban and the Dallas Mavericks Dismissed

A federal judge has dismissed a lawsuit against billionaire Mark Cuban and the Dallas Mavericks over allegations related to the collapse of Voyager Digital. The case, which accused them of misleading consumers through promotions, failed to establish jurisdiction in Florida.

Key Takeaways

A lawsuit against Mark Cuban and the Dallas Mavericks has been dismissed due to lack of jurisdiction.
The case was based on claims that Cuban’s promotion of Voyager Digital misled investors.
Voyager, once valued at $5 billion, went bankrupt in July 2022, affecting millions of investors.
Cuban’s attorneys anticipate possible re-filing of the lawsuit in another jurisdiction.

Cuban

Lawsuit Background

A federal judge in the United States has dismissed a lawsuit filed by crypto investors against Mark Cuban and the Dallas Mavericks. The plaintiffs attempted to hold Cuban and the team responsible for the downfall of Voyager Digital, linking it to the promotion they undertook. Judge Roy K. Altman, of the US District Court for the Southern District of Florida, stated in a recent order that the plaintiffs were unable to establish personal jurisdiction over either Cuban or the Mavericks, indicating that there was insufficient connection to Florida regarding the alleged promotional activities.

Cuban’s Investment Comments Under Fire

The lawsuit, initiated in 2022, claimed that Cuban encouraged fans to invest in Voyager Digital’s interest-bearing accounts. This assertion was based on remarks made by Cuban during a Mavericks news conference in October 2021 where he disclosed his personal investment in the firm. Additionally, the suit highlighted a promotional post from the Mavericks offering customers $100 in Bitcoin for downloading Voyager's app and making a qualifying deposit and trade.

Dismissal Details

Cuban's legal team contended that the Florida court lacked jurisdiction over both Cuban and the Mavericks. They emphasized that Cuban had cautioned individuals to be prudent with their investments. The law firm Brown Rudnick, representing Cuban and the Mavericks, noted that Judge Altman dismissed the case without prejudice after extensive litigation and examination of jurisdictional issues. They pointed out that general promotions across the country did not equate to intentional targeting of Florida residents, as stipulated by Florida's long arm statute and due process requirements.

Steve Best, the lead attorney for Cuban and the Mavericks, expressed satisfaction with the ruling, stating, “We couldn’t be more pleased with the absolute right result.” He also mentioned the possibility of the plaintiffs filing the case in a different jurisdiction, and he expressed readiness to continue defending Cuban and the Mavericks wherever necessary. “Mark doesn’t settle when he believes he is on the right side of the law,” Best added.

Broader Context of Legal Actions

This lawsuit is part of a wider trend involving legal actions against athletes and celebrities who endorsed cryptocurrency platforms that ultimately failed. Notably, Voyager Digital filed for bankruptcy in July 2022, having held over $5 billion in assets and approximately 3.5 million investors at its peak before the collapse. Following these events, Cuban has sold his majority share in the Mavericks to prominent casino operator Miriam Adelson.