Voyager lawsuit against Mark Cuban and Dallas Mavericks dismissed on jurisdictional grounds.
Summary
- Class action lawsuit over Voyager promotions dismissed due to lack of jurisdiction in Florida.
- The judge said national marketing, press events and app promotion were not targeted at Florida residents.
- Plaintiffs can file elsewhere as the 2022 Voyager collapse continues to spark lawsuits.
A US federal judge dismissed a cryptocurrency investor lawsuit against Mark Cuban and the Dallas Mavericks on Friday, ruling that the plaintiffs failed to establish personal jurisdiction over the defendants in Florida.
Judge Roy K. Altman of the U.S. District Court for the Southern District of Florida determined that there was insufficient legal connection between Florida and the alleged promotional activities to warrant hearing the case. according to to court documents.
The lawsuit, filed in 2022, alleged that Cuban and the Mavericks used their public platform to promote Voyager Digital’s products, contributing to investor losses following the cryptocurrency lender’s bankruptcy. The case was part of a broader lawsuit against celebrities, athletes and sports teams accused of promoting crypto platforms that subsequently collapsed.
The ruling focused on the boundaries of jurisdiction rather than assessing whether the promotions were misleading or inappropriate. The court ruled that nationwide or online promotions do not automatically constitute targeting of Florida residents under the state’s long-arm statute or constitutional due process standards, the order said.
The judge dismissed the case without prejudice, giving plaintiffs the opportunity to re-file their claims in another jurisdiction.
Plaintiffs cited comments Cuban made during a Mavericks news conference in October 2021 in which he stated he had personally invested in Voyager. The complaint also referenced a Mavericks promotion that offered $100 in Bitcoin to customers who downloaded the Voyager app, opened an account, deposited $100 and completed a transaction.
Cuban’s legal team argued that neither Cuban nor the Mavericks specifically targeted Florida residents and that Cuban had repeatedly warned people to be careful with their money when publicly discussing crypto investments, court documents show.
Cuban Crypto and Dallas Mavericks Lawsuit Dismissed
Brown Rudnick, the law firm representing Cuban and the Mavericks, stated that the dismissal followed years of litigation and jurisdictional discovery. The company said the court rejected the idea that broad national marketing campaigns can only establish jurisdiction in every state where an investor claims damages.
“We couldn’t be more pleased with the absolutely right outcome,” lead attorney Steve Best told ESPN, the company said. Best added that while the plaintiffs may seek another venue, the defense is prepared to contest the claims wherever they are brought, noting that Cuban “will not settle if he believes he is on the right side of the law.”
Voyager filed for Chapter 11 bankruptcy protection in July 2022 after market losses and counterparty failures. The company reportedly had more than $5 billion in assets and served nearly 3.5 million customers at its peak in 2021, according to company records.
The collapse led to multiple lawsuits against executives, partners and promoters as investors sought to test the legal limits of crypto marketing and celebrity endorsements.
Cuban sold his majority stake in the Mavericks to casino magnate Miriam Adelson in late 2023, though he retained a minority stake and remained involved in basketball operations, according to reports.
