According to Cointelegraph: The National Basketball Association (NBA) is now facing a proposed class-action lawsuit over its marketing partnerships with the now-defunct crypto lender, Voyager Digital. A group of dissatisfied Voyager investors, who allege losses over $4.2 billion, claim the NBA is responsible and liable for their losses.
Filed in a Miami district court on Feb. 6, the lawsuit accuses the NBA of "gross negligence" in approving Voyager's promotional deal with Dallas Mavericks. The over 100-page court document details the marketing activities between the two firms and suggests that the NBA was meant to act as the "gatekeeper."
Plaintiffs argue that the NBA knowingly took the risks related to working with crypto exchanges such as Voyager, Coinbase, and FTX. They maintain that the NBA accepted "billions in promotional compensation" amid losses of television revenues and "empty arenas" because of the COVID-19 pandemic.
Voyager's law firm, McCarter & English, is also named in the lawsuit. The plaintiffs claim that the firm leveraged its credibility to issue a deceptive 'Legal Opinion' stating Voyager's token wasn't an unregistered security, aimed at calming potential investors and partners.
In 2022, the same group sued Mark Cuban, ex-owner of the Dallas Mavericks, accusing him of falsely promoting Voyager as safe. This lawsuit's extensive discovery necessitated the plaintiffs to extend their litigation to the NBA and McCarter & English.
Voyager halted withdrawals in early July 2022 and filed for bankruptcy the same month following exposure to the now-defunct crypto hedge fund Three Arrows Capital (3AC).
The NBA and McCarter & English have yet to comment on the lawsuit.