Bitcoin promo lawsuit vs Cuban, Mavericks tossed on jurisdiction grounds

Voyager suit against Mark Cuban and Dallas Mavericks tossed on jurisdiction grounds.
Summary

• Class-action suit over Voyager promotions dismissed for lack of Florida jurisdiction.
• Judge said national marketing, press events, and app promo didn’t target Florida residents.
• Plaintiffs can refile elsewhere as Voyager’s 2022 collapse keeps spawning litigation.

A U.S. federal judge dismissed a cryptocurrency investor lawsuit against Mark Cuban and the Dallas Mavericks on Friday, ruling that 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 insufficient legal connection existed between Florida and the alleged promotional activity to justify hearing the case, according 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 after the crypto lender’s bankruptcy. The case was part of broader litigation targeting celebrities, athletes and sports teams accused of promoting crypto platforms that subsequently collapsed.

The ruling focused on jurisdictional limits rather than assessing whether the promotions were misleading or improper. The court found that nationwide or online promotions do not automatically constitute purposeful targeting of Florida residents under the state’s long-arm statute or constitutional due-process standards, according to the order.

The judge dismissed the case without prejudice, allowing plaintiffs the possibility of refiling claims in another jurisdiction.

Plaintiffs cited remarks Cuban made at an October 2021 Mavericks news conference in which he stated he had personally invested in Voyager. The complaint also referenced a Mavericks promotion offering $100 in Bitcoin to customers who downloaded the Voyager app, opened an account, deposited $100 and completed a trade.

Cuban’s legal team argued that neither Cuban nor the Mavericks specifically targeted Florida residents and that Cuban had repeatedly cautioned people to exercise care with their money when discussing crypto investments publicly, according to court filings.

Cuban crypto and Dallas Mavericks suit dismissed

Brown Rudnick, the law firm representing Cuban and the Mavericks, stated the dismissal followed years of litigation and jurisdictional discovery. The firm said the court rejected the notion that broad national marketing campaigns alone can establish jurisdiction in any state where an investor claims harm.

“We couldn’t be more pleased with the absolute right result,” lead counsel Steve Best told ESPN, according to the firm. Best added that while plaintiffs may seek another venue, the defense is prepared to contest the claims wherever they are brought, noting that Cuban “doesn’t settle when he believes he is on the right side of the law.”

Voyager filed for Chapter 11 bankruptcy protection in July 2022 following market losses and counterparty failures. The company reportedly held more than $5 billion in assets and served nearly 3.5 million customers at its peak in 2021, according to company data.

The collapse triggered multiple lawsuits against executives, partners and promoters as investors sought to test legal boundaries 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 interest and continued involvement in basketball operations, according to reports.