A US federal court has dismissed a class action lawsuit filed in 2022 against businessman Mark Cuban and the Dallas Mavericks over alleged promotional practices of a cryptocurrency platform. The decision was handed down by Judge Roy K. Altman of the US District Court for the Southern District of Florida on December 26, and was based on the lack of personal jurisdiction over the defendants.
The lawsuit was initiated by former customers of Voyager Digital, a cryptocurrency lending service that went bankrupt. The plaintiffs alleged that Cuban, in his capacity as a public figure and then majority owner of the Mavericks, had induced them to open accounts on the platform through public statements and promotions linked to the team.
Mark Cuban’s controversial promotion
In their complaint, the plaintiffs referenced a Mavericks press conference in October 2021 in which Cuban claimed to have personally invested in Voyager, as well as a social media campaign that offered Bitcoin incentives to those who signed up and traded on the platform.
Cuban and the Mavericks’ lawyers defended their clients by arguing that the billionaire had warned the public about financial risks, that Voyager’s assets were not securities subject to regulation of promotions, and that the Florida court had no jurisdiction to hear the case.
Altman’s ruling concluded that Cuban and the Mavericks’ contacts with the judicial forum were insufficient to establish personal jurisdiction under Florida law, which invalidated the legal basis for continuing the litigation in that state.
Other athletes involved
Among the defendants originally named in the lawsuit were sports figures such as former NFL player Rob Gronkowski, former NBA player Victor Oladipo and NASCAR driver Landon Cassill, who had settled their cases with previous settlements.
Cuban, known for his track record as an investor and for his role as owner of the Mavericks until he sold his majority stake, has faced multiple lawsuits in recent years over the promotion of cryptocurrency-related services, an area that has been the focus of lawsuits following the collapse of platforms such as Voyager.
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