The National Basketball Association (NBA) finds itself embroiled in a potential class-action lawsuit concerning its marketing agreements with now-defunct cryptocurrency lender Voyager Digital. Users of the platform allege losses exceeding £4.2 billion.
According to a lawsuit filed on February 6th in a Miami district court, the NBA’s approval of Voyager’s promotional deal with the Dallas Mavericks was deemed “grossly negligent.”
The extensive 100-page filing asserts that the NBA was meant to act as a “gatekeeper” in such matters.
“The sole aim of this lawsuit is to hold the NBA accountable,” asserts the class group. They argue that the NBA’s widespread promotion of Voyager’s unregistered securities makes it liable for any ensuing damages.
Furthermore, plaintiffs claim that the NBA willingly embraced the risks associated with collaborating with cryptocurrency exchanges like Voyager, Coinbase, and FTX.
This decision allegedly stemmed from financial pressures caused by COVID-19, including reduced arena attendance and television revenue losses.
The lawsuit also implicates Voyager’s law firm, McCarter & English, alleging that it provided a misleading “Legal Opinion” to assuage concerns about the legality of Voyager’s tokens.
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This legal action follows a prior lawsuit against former Dallas Mavericks owner Mark Cuban, accused of promoting Voyager and misrepresenting its safety.
The expanded litigation now targets the NBA and McCarter & English due to revelations uncovered during the discovery process of the earlier lawsuit.
Voyager ceased withdrawals in July 2022 and declared bankruptcy the same month due to its involvement with the now-defunct crypto hedge fund Three Arrows Capital (3AC).
Numerous lawsuits have emerged against celebrities, athletes, and sporting entities involved with cryptocurrency firms since the collapse of FTX in late 2022.
Entities such as the Mercedes F1 Team, Major League Baseball, and prominent figures like Tom Brady and Steph Curry face legal action for their partnerships with FTX.
At the time of reporting, neither the NBA nor McCarter & English had responded to requests for comment.
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