- Voyager Digital’s bankruptcy led to a class action lawsuit, claiming Cuban’s promotion affected 3.5 million customers, with $5 billion in losses.
- This lawsuit highlights risks involved in endorsing crypto firms, emphasizing potential legal challenges for high-profile endorsements.
Mark Cuban could potentially face trial in November 2024 if he fails to settle claims in the ongoing class action lawsuit related to Voyager Digital, a cryptocurrency firm. Unlike Cuban, co-defendants including sports figures Rob Gronkowski, Victor Oladipo, and Landon Cassill have decided to settle allegations connected to their promotion of Voyager Digital. They have agreed collectively to pay $2.4 million.
The settlement, if approved by the court, would leave Cuban and his basketball team, the Dallas Mavericks, as the sole defendants proceeding to trial later this year. This was highlighted in a recent court filing which stated,
 “Plaintiffs have now settled with Voyager promoters Cassill, Gronkowski, and Oladipo for millions of dollars in relief to the class, leaving Co-Defendants Mark Cuban and the Dallas Mavericks as the remaining Defendants for trial in November 2024.”
In 2021, Cuban and the Dallas Mavericks entered into a five-year promotional agreement with Voyager Digital. Leveraging Cuban’s prominence and the Mavericks’ fan base, Voyager was able to attract a substantial number of customers.Â
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However, the company’s bankruptcy in 2022 resulted in significant financial losses for investors, prompting the class action lawsuit. The plaintiffs, who are former customers of Voyager, allege that Cuban’s promotion negatively impacted approximately 3.5 million people, with total losses exceeding $5 billion.
Among the sports figures who settled, Rob Gronkowski had a particularly extensive promotional deal with Voyager Digital, acting as a brand ambassador and token holder. His role in the firm’s marketing initiatives led him to contribute $1.9 million to the settlement—a higher amount compared to Oladipo and Cassill.
The legal challenges facing Cuban and the Dallas Mavericks underscore the risks associated with high-profile endorsements of cryptocurrency firms. As the situation unfolds, it will be interesting to see whether Cuban opts to seek a settlement or proceed with the scheduled trial in November 2024. This case serves as a critical reminder of the potential liabilities that can arise from the endorsement of volatile financial products by influential figures.
