Mark Cuban to face questioning under oath over promotion of Voyager

Dallas Mavericks proprietor Mark Cuban is about to be “deposed” subsequent month as a part of a protection towards a proposed class-action lawsuit alleging that he promoted an alleged “ponzi-scheme” within the type of now-bankrupted crypto lender Voyager Digital.

A deposition in authorized phrases typically refers to answering a line of questioning below oath throughout the pre-trial discovery stage of a possible court docket case.

In a Jan. 9 court docket order, U.S. Justice of the Peace Choose Lisette M. Reid denied Cuban’s request to separate the deposition into two events, and outlined that his full deposition will probably be taken on Feb. 2 in Dallas, Texas.

As a part of the protection, two Dallas Mavericks staff may even must be deposed earlier than Feb. 23.

Moreover, the choose said that three plaintiffs behind the go well with, Pierce Robertson, Rachel Gold and Sanford Gold will probably be deposed earlier than the tip of this month.

In a moderately feisty assertion to authorized information publication Law360 on Jan. 9, the plaintiffs’ counsel expressed their enthusiasm over the choose “denying Mark Cuban’s makes an attempt to remain and delay discovery.”

“We now have been litigating on behalf of a whole lot of injured Voyager buyers for greater than a 12 months and can lastly be capable to uncover proof of what transpired, and absolutely perceive to what extent Mr. Cuban, and his Dallas Mavericks, had been concerned within the ‘providing’ of those unregistered securities and to what extent he was to revenue,” they stated.

Cuban’s counsel additionally spoke to Law360 and famous that the deposition of the plaintiffs will cowl “problems with standing, alleged false statements included within the grievance and questions concerning the Voyager accounts held by the plaintiffs.”

Associated: Voyager tells court Binance acquisition plan is ‘sound business judgment,’ urgently needed

The lawsuit in query was initially filed on Aug. 10, 2022, with the plaintiffs alleging that Cuban misrepresented Voyager on quite a few events earlier than it went bankrupt, making doubtful claims of it being cheaper than rivals and providing “commission-free” buying and selling providers.

The go well with additionally alleges that the agency provided unregistered securities and that Cuban and Voyager CEO Stephen Ehrlich utilized their subtle expertise to rope uneducated buyers to pour their life financial savings into what they now really feel to be a “ponzi-scheme.”

Voyager officially entered into chapter 11 bankruptcy Jul. 6 final 12 months. After dealing with liquidity points on account of crypto winter and a hefty mortgage to Three Arrows Capital that was defaulted on, the agency emphasised that the transfer was a part of a ““Plan of Reorganization.”