Lately, it is not very rare to see individuals associated with the NBA getting involved in lawsuits and federal cases. However, it is a rare sight to see the NBA itself facing lawsuits.
Earlier today, reports indicated that the league is confronting class-action lawsuits over illicit marketing deals with a company that has now ceased to function.
Allegations Against the NBA: Gross Negligence and Liability
The NBA is now being sued for its inappropriate dealings in the deals with now-failed crypto lender Voyager Digital, who have stimulated a loss of over 4.2 billion USD to a group of investors that have initiated proceedings in the league. According to the group, they simply want to hold the league responsible for its part, stating that the league was “grossly negligent” by allowing the company to initiate business deals with teams within the league.
The investors also claimed that the league took risks with crypto firms such as Voyager, Coinbase, and FTX, accepting massive amounts of money to compensate for lost revenue during the Covid era when fans were not allowed entry into arenas. This situation impacted the league’s growth, merchandise sales, and other promotional expenses.
“This lawsuit simply seeks to hold the NBA liable. The NBA’s widespread promotion of Voyager’s unregistered securities renders it liable for any and all resulting damages,” the class group claimed.
In 2022, the same group entered into legal proceedings with Mavericks’ former owner Mark Cuban exclaiming the entrepreneur had widely promoted the company to the league through the Dallas Mavericks. The group’s initial “discovery” of Cuban’s involvement led to expanding the search area, exploring the league’s participation in the deals which have boosted the league’s finances.
Lawsuits against celebrities and Sporting Organizations
With the abrupt shutting down of FTX, a cryptocurrency exchange and trading company, multiple celebrities, athletes and social media stars soon started receiving lawsuits at their doorsteps for their involvement with the company.
The list of clientele that received lawsuits varied from the Mercedes F1 team to another sporting league, Major League Baseball. NFL legend and superstar Tom Brady, one of the greatest sharpshooters of all-time, Stephen Curry and one of the most dominant stars the NBA has ever seen, Shaquille O’Neal were the notable athletes that were handed out notices for their connection with the firm.
While the NBA never backs down from any sort of controversy regardless of their implications, the league is yet to provide any comment on this lawsuit.
