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Voyager asks court to dismiss investor lawsuit against billionaire Mark Cuban

The lawsuit earlier alleged that Mark Cuban targeted young and inexperienced investors to pour their money into a “Ponzi scheme” on Voyager.

Voyager Digital’s attorneys, who are currently in bankruptcy proceedings, have asked the bankruptcy court to stop a lawsuit brought by investors against the company’s founder and CEO, Stephen Ehrlich, and Dallas Mavericks owner, Mark Cuban.

According to the report, the argument made by lawyers is that both Ehrlich and Kobe are linked to a similar lawsuit brought by the same group of plaintiffs against Voyager itself. It is important to note that lawsuits against companies in bankruptcy are automatically stopped, which means that filing for bankruptcy stops many legal proceedings in its tracks, including debt collection lawsuits.

However, this does not apply to third parties, including company executives. However, bankruptcy judges can come to an agreement to extend temporary protection to others associated with the company.

Allegations against Mark Cuban

The latest development comes two weeks after a class action lawsuit was filed in the US District Court in the Southern District of Florida against Cuban, Dallas Mavericks, as well as Voyager Digital’s CEO, Stephen Ehrlich.

The 12 main prosecutors accused Cuban of targeting “young and inexperienced fans” in order to pour a significant amount of their savings into Voyager Digital by promoting the company on several occasions and “making great efforts to use their expertise as investors to deceive millions of Americans.”

They alleged that the Shark Tank star misrepresented the plaintiffs in terms of undisclosed commissions on cryptocurrency trades made on Voyager. The status of the lender’s federal insurance and the Federal Deposit Insurance Corporation (FDIC) has also been disputed according to court filings.

Cuban is also accused of speaking at a press conference in the Dallas Mavericks, where he is alleged to be a strong supporter and endorsement of the partnership between his company and the Voyager defendants.

The plaintiffs also went on to highlight the billionaire entrepreneur who “proudly described how he would personally help significantly increase the reach and presence of the fraudulent Voyager platform for those with limited money and experience.”

Voyager Saga

Voyager Digital declared bankruptcy in July, citing “prolonged volatility and contagion in the cryptocurrency markets” as well as 3AC defaulting on a loan from the company’s subsidiary.

The Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve recently ordered cryptocurrency lenders to stop making false and misleading statements regarding the FDIC’s deposit insurance status via social media accounts, mobile apps, and websites.

source

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