The National Basketball Association (NBA) is embroiled in a proposed class-action lawsuit concerning its marketing collaborations with the now-defunct crypto lender Voyager Digital, allegedly resulting in losses exceeding $4.2 billion for platform users.
The over 100-page lawsuit, filed on Feb. 6 in a Miami district court, accuses the NBA of being “grossly negligent” in approving Voyager’s promotional deal with the Dallas Mavericks. The lawsuit contends that the NBA was supposed to act as the “gatekeeper” in such agreements.
The class group behind the lawsuit asserts that it aims to hold the NBA accountable for its widespread promotion of Voyager’s unregistered securities, which they argue makes the NBA liable for any ensuing damages.
Plaintiffs further allege that the NBA knowingly embraced the risks associated with collaborating with crypto exchanges like Voyager, Coinbase, and FTX. They claim the NBA accepted billions in promotional compensation amidst challenges such as empty arenas and the loss of television revenues due to the COVID-19 pandemic.
The lawsuit also implicates Voyager’s law firm, McCarter & English, alleging that it provided a misleading “Legal Opinion” to reassure potential investors and partners about the legitimacy of Voyager’s offerings.
Previously, the same group had sued Mark Cuban, former owner of the Dallas Mavericks, over his promotion of Voyager. The class group expanded its litigation to include the NBA and McCarter & English following extensive discovery during the lawsuit against Cuban.
Voyager ceased withdrawals in early July 2022 and filed for bankruptcy the same month due to its exposure to the defunct crypto hedge fund Three Arrows Capital (3AC). Following the collapse of FTX in late 2022, multiple lawsuits have been filed against celebrities, sports stars, and organizations that partnered with crypto firms, including the Mercedes F1 Team, Major League Baseball, Tom Brady, Steph Curry, Shaquille O’Neal, Larry David, and others.
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