The NBA Faces a Lawsuit Over Marketing Deals with Voyager Digital
The National Basketball Association (NBA) finds itself in a legal predicament as a group of investors from the now-bankrupt cryptocurrency lending platform, Voyager Digital, files a class-action lawsuit. The lawsuit, filed in a Miami district court, spans over 100 pages and heavily criticizes the NBA’s marketing agreements with Voyager. The plaintiffs argue that these actions directly contributed to their substantial losses.
This lawsuit simply aims to hold the NBA accountable, as the NBA’s widespread promotion of unregistered Voyager securities makes them liable for any resulting damages.
Accusations Against the NBA
The disgruntled investors point fingers at the NBA’s responsibility in approving the promotional agreement with Voyager, in collaboration with the Dallas Mavericks. They accuse the basketball league of being thoroughly negligent and failing to fulfill its role as a guardian against the risks associated with cryptocurrency exchanges.
The plaintiffs seek to hold the NBA accountable for the damages resulting from the promotion of unregistered Voyager securities. They also allege that the NBA knowingly took the risk of associating with cryptocurrency exchanges, lured by significant promotional compensations amid declining television revenues and arena attendance.
In 2022, the same group sued former Dallas Mavericks owner, Mark Cuban, accusing him of promoting Voyager and making false statements about the product’s safety, which Mr. Cuban denies.
Other Accusations and Context
Voyager’s law firm, McCarter & English, is also mentioned in the lawsuit for issuing a ‘false legal opinion’ claiming that the Voyager token was not an unregistered security. This legal action is not isolated; it follows similar lawsuits against celebrities and sports organizations that partnered with cryptocurrency firms, particularly after the collapse of FTX in 2022.
Mercedes F1, MLB, American football star Tom Brady, NBA star Stephen Curry, Shaquille O’Neal, comedian Larry David, and many others have found themselves facing legal proceedings for their associations with FTX.
