Court rules former Voyager investors failed to establish jurisdiction in class-action case
A federal judge has dismissed a class-action lawsuit brought by former Voyager Digital investors against Mark Cuban and the Dallas Mavericks, delivering a legal victory tied to the failed cryptocurrency exchange’s collapse.
In a ruling issued by the U.S. District Court for the Southern District of Florida, the judge granted a motion to dismiss, concluding that the plaintiffs failed to establish personal jurisdiction over Cuban and the Mavericks. The court found insufficient evidence that the defendants conducted business or specifically targeted investors in Florida. The ruling emphasized that ownership of property or occasional travel to the state did not meet the legal threshold.
The lawsuit was filed in August 2022, shortly after Voyager Digital entered bankruptcy proceedings. Investors alleged false representations and deceptive conduct, pointing to a 2021 marketing partnership between Voyager and the Dallas Mavericks. The plaintiffs argued that promotional efforts downplayed the risks associated with crypto investments.
However, the court noted that the claims relied heavily on Voyager’s actions, not those of Cuban or the Mavericks. The absence of Voyager itself as a defendant weakened the conspiracy-based arguments.
Voyager’s bankruptcy occurred amid a broader crypto market downturn in 2022, following the collapse of major industry players and widespread losses. Several firms filed for bankruptcy during that period, highlighting systemic risks across the sector.The dismissal closes a high-profile case and underscores the legal challenges investors face when pursuing claims tied to crypto sponsorships and endorsements.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.