Investors sue Voyager lawyers and NBA over $4B in losses
The National Basketball Association (NBA) and lawyers representing collapsed crypto lender Voyager Digital have been hit with a lawsuit over the promotion and defense of the firm that investors say led to $4.2 billion in losses.
The lawsuit, filed on Tuesday, alleges the NBA was “grossly negligent” when Mark Cuban, the former owner of the Dallas Mavericks, struck a marketing deal with Voyager.
It claims that the NBA accepted billions in promotional compensation as Covid left the association with “empty arenas and the loss of billions in television revenues.” It added that the NBA leveraged its “global reputation and trust in the NBA brand,” to promote the selling of unregistered and illegal securities to the public.
McCarter & English LLP, the law firm that represented Voyager, was alleged to have “produced fraudulent legal opinions” while maintaining Voyager was operating “entirely above board.”
Read more: DoJ appeals against Voyager asset deal with Binance US
Cuban was sued by Voyager investors shortly after the lender went bankrupt in 2022. He was accused of shilling Voyager Digital’s unregistered securities and contributing to the loss of billions in a Ponzi-style scheme.
McCarter & English reportedly said it will “vigorously defend the firm, which provided clear and competent advice to our clients.”
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