A South Florida attorney has his sights on famed investor Mark Cuban—and his Dallas Mavericks basketball team—after a federal bankruptcy judge in the Southern District of New York approved a stipulation involving Voyager Digital Holdings and its chief executive officer, and allowed a Miami federal lawsuit to proceed.
In the Miami case, Adam Moskowitz, the managing partner at the Moskowitz Law Firm in Coral Gables, and David Boies, chairman and managing partner at Boies Schiller Flexner in New York, are co-lead counsel in the class action lawsuit against defendants, Voyager and Stephen Ehrlich.
‘The NBA Is a Real Target’
The order U.S. Bankruptcy Judge Michael Wiles entered found that the class of plaintiffs, more than 320 investors, had agreed not to pursue claims against the defendants. In return, the defendants offered up a clear path to attempt to hold Cuban and the Mavericks accountable in the Southern District of Florida court case.
Meanwhile, plaintiffs counsel is seeking third-party discovery to determine what alleged role and liability the NBA had in the Voyager bankruptcy.
“The NBA is a real target because they approved, they supervised, and said they would share in the agreement between the Mavericks and Voyager,” Moskowitz claimed. “This is at a time when NBA Commissioner Adam Silver said that COVID could be ‘the life or death of the NBA’ and decided to encourage each team to sign crypto currency deals to make up the shortfalls.”
In response to Moskowitz’ statement, Stephen Zack, managing partner at Boies Schiller Flexner in Miami who is also involved in the case, issued a statement after publication.
“The context of Mr. Moskowitz’s statement about the NBA could result in a reader inferring that BSF was contemplating litigation against, or somehow ‘targeting,’ the NBA in connection with the issues raised in our lawsuit against Mr. Cuban and the Dallas Mavericks,” Zack said. “That inference would not be accurate.”
“The only targets of the lawsuit in which we are co-lead counsel with Mr. Moskowitz’s firm are the Defendants in that lawsuit,” Zack added. “Mr. Moskowitz, and perhaps others, may assert related claims against the NBA. That is up to them. We do not have or express a view one way or the other about the merits of lack of merits of those claims. However, BSF has no plans to participate in any way in bringing those claims, and is not itself aware of any basis for such claims.”
Rick Buchanan, general counsel for the NBA, Christopher Knight, managing shareholder at Fowler White Burnett in its Miami office who represents Cuban, and Michael Legg, chief communications officer for Voyager, did not respond to requests for comment.
Moskowitz was among the attorneys who filed the proposed nationwide class action against Voyager more than eight months ago that was assigned to U.S. District Judge Cecilia Altonaga, according to court documents.
Numerous customers nationwide were part of the class that alleged an estimated fraud of more than $4 billion against one of the then-largest cryptocurrency platforms, Voyager.
Soon after, the U.S. Securities and Exchange Commission and nearly 10 state attorneys general sued Voyager, which is listed in Toronto, Canada, and operates out of New York, for the “sale of an unregistered security,” in violation of state and federal law.
And in the class action, when the defendants produced discovery, plaintiffs counsel alleged that it revealed the direct involvement of Cuban in his solicitation of new investors for Voyager. But these investors soon sustained the loss of their investment, court documents show.
While this process dragged, Moskowitz said that “thousands of additional victims” contacted class action counsel, and claimed that Cuban convinced them to invest with Voyager prior to that crypto broker filing for bankruptcy protection in the Southern District of New York.
In the bankruptcy case, Voyager enlisted Kirkland & Ellis, which argued on its behalf before the federal bankruptcy court.
But the documents produced in discovery showed that Cuban himself did not invest in the company, court documents showed.
Now, the stipulation dismissed with prejudice Voyager and Ehrlich as defendants, and Ehrlich agreed to provide related financial disclosures, as well as step aside from litigation surrounding the upcoming trial before U.S. District Judge Roy Altman involving Cuban and the Mavericks.
Moskowitz said when Silver stated that COVID-19 could be the life or death of the NBA, in the same week, Silver coordinated for multiple franchises to sign partnership agreements with various cryptocurrency companies, including Voyager and FTX.
“It may be just a coincidence that Mark Cuban decided to be on the cover of most financial publications this week, for his new health care initiatives,” Moskowitz said. “It might also be a case of the movie ‘Wag the Dog,’ where he deflects attention from his real crisis.”