NBA accused by investors of promoting unregistered securities over marketing agreement with Voyager

The National Basketball Association (NBA) has been sued by investors over its marketing agreement with Voyager Digital Holding. The investors allege in a lawsuit filed in Miami that lawyers for the NBA and McCarter & English were "grossly negligent" in agreeing to a marketing agreement between Voyager and Mark Cuban, the former owner of the NBA's Dallas Mavericks. Investors have previously sued Mark Cuban for promoting Voyager, calling it an "unregulated and unsustainable fraud." "The NBA's extensive promotion of Voyager's unregistered securities makes it liable for any and all resulting damages," the investors claim. They also name McCarter & English, the law firm representing Voyager, as a defendant, saying the law firm Providing fraudulent legal advice. (Bloomberg) In November 2023, U.S. federal judge Gregory Woods approved an order requiring crypto lending company Voyager Digital and its affiliates to pay a $1.65 billion settlement to the U.S. Federal Trade Commission (FTC). The judge said the order will largely not affect bankruptcy court proceedings, according to documents filed in the U.S. District Court for the Southern District of New York. It is reported that Voyager filed for bankruptcy protection in July 2022. As part of the settlement, Voyager will be "permanently restrained and prohibited" from marketing or providing products or services related to digital assets. Under the settlement, parties involved with Voyager must cooperate with FTC officials, including testifying at hearings, trials and discovery. Voyager must also report its compliance after one year and be subject to oversight by the FTC.