Dallas Mavericks proprietor Mark Cuban is ready 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 usually refers to answering a line of questioning beneath oath in the course of 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 likely be taken on Feb. 2 in Dallas, Texas.
As a part of the protection, two Dallas Mavericks staff may also have to be deposed earlier than Feb. 23.
Moreover, the choose acknowledged that three plaintiffs behind the swimsuit, Pierce Robertson, Rachel Gold and Sanford Gold will likely be deposed earlier than the tip of this month.
In a reasonably 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’ve got been litigating on behalf of a whole lot of injured Voyager traders for greater than a 12 months and can lastly be capable of uncover proof of what transpired, and totally perceive to what extent Mr. Cuban, and his Dallas Mavericks, have 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 criticism and questions in regards to the Voyager accounts held by the plaintiffs.”
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 swimsuit additionally alleges that the agency provided unregistered securities and that Cuban and Voyager CEO Stephen Ehrlich utilized their refined expertise to rope uneducated traders 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 because 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.”