In a legal maelstrom surrounding the downfall of Voyager Digital Holdings Inc., investors have launched a proposed class action against the NBA and McCarter & English in a Florida federal court. This follows the already ongoing litigation against the Dallas Mavericks and Mark Cuban, the majority owner, over their involvement with Voyager.
NBA and McCarter & English Voyager Crypto Suit : Casting a Wider Net
The investors, unsatisfied with the ongoing proceedings, have broadened their legal crusade. Allegations point towards the NBA’s lack of scrutiny in the cryptocurrency partnership with the Mavericks and McCarter & English’s purported provision of flimsy legal advice, ultimately contributing to Voyager’s implosion.
NBA’s All-In Gamble on Cryptocurrency
The complaint accuses the NBA of a deliberate decision to embrace the risks associated with cryptocurrency exchanges like Voyager, FTX, and Coinbase. However, this bold move allegedly resulted in significant legal and financial repercussions, leaving investors in disarray.
NBA and McCarter & English Voyager Crypto Suit: Crossing the Line
The focus shifts to McCarter & English, particularly honing in on legal opinions provided at Voyager’s request. The complaint deems these opinions, declaring Voyager’s assets as non-unregistered securities, as “bogus.” Investors assert that the law firm’s recklessness and gross negligence crossed ethical boundaries, actively participating in a conspiracy causing billions in damages.
McCarter & English: Enabling a RICO Conspiracy
The 108-page complaint delves into the intricate dealings between Voyager and the Mavericks, with the NBA acting as the supposed “gatekeeper.” However, the investors claim that the NBA, preoccupied with financial gains amid the post-COVID sports rebound, failed to scrutinize the risky cryptocurrency industry adequately.
McCarter & English’s Dance with Deceit
Working closely with Voyager, McCarter & English allegedly assisted in preparing legal opinions and counsel to facilitate the listing of the company’s cryptocurrency assets on specific marketplaces. Investors argue that this involvement contradicts federal court decisions and government guidance, suggesting that attorneys providing counsel to cryptocurrency firms may later face securities fraud allegations.
NBA and McCarter & English Voyager Crypto Suit : Defensive Stance
A spokesperson for McCarter & English vehemently defended the firm, disputing the core allegations, stating, “We intend to vigorously defend the firm, which provided clear and competent advice to our clients, and expect to be vindicated.”
