A proposed class-action lawsuit has been filed against the National Basketball Association (NBA) by disgruntled Voyager investors, alleging implicit liability for losses incurred on the failed platform. The lawsuit claims that the NBA's marketing deals with now-collapsed crypto lender Voyager Digital led to losses exceeding $4.2 billion for users.
Filed in a Miami District Court on Feb. 6, the over 100-page lawsuit accuses the NBA of "gross negligence" in approving Voyager's promotional deal with the Dallas Mavericks. It suggests that the NBA was meant to act as a "gatekeeper" but failed to fulfill its duty.
The lawsuit aims to hold the NBA accountable for its promotion of Voyager's unregistered securities, alleging that the league's widespread endorsement renders it liable for resulting damages. It also accuses the NBA of knowingly embracing the risks associated with working with crypto exchanges like Voyager, Coinbase, and FTX.
The plaintiffs claim that Voyager's law firm, McCarter & English, played a role by issuing a "bogus 'Legal Opinion'" to assuage concerns about the platform's offerings. They argue that the law firm leveraged its credibility to mislead potential investors and partners.
The lawsuit expands on a previous case against Dallas Mavericks' former owner Mark Cuban, alleging his promotion of Voyager and misrepresentation of its safety. The discovery process in that case led to the widening of litigation to include the NBA and McCarter & English.
Voyager ceased withdrawals in July 2022 and filed for bankruptcy the same month due to exposure to the defunct crypto hedge fund Three Arrows Capital (3AC). This lawsuit is part of a series of legal actions targeting celebrities, sports stars, and organizations associated with collapsed crypto firms like FTX.
Notably, the NBA and McCarter & English have not yet responded to requests for comment on the lawsuit.