Lawyers in Voyager Case Engaged in ‘Reckless Conduct,’ Mark Cuban Says

Mark Cuban seeks “reasonable” attorneys’ fees and costs

article-image

Mark Cuban | Joe Seer/Shutterstock modified by Blockworks

share

Lawyers representing a class-action lawsuit alleging that Mark Cuban promoted Voyager – and likened it to a Ponzi scheme – were “objectively reckless,” according to Cuban.

In a filing asking the court to pursue sanctions against the counsel of the plaintiffs in the suit, Cuban and his attorneys have asked the court to pursue Section 1927 sanctions against the counsel. 

Section 1927 sanctions can be imposed when attorney conduct “viewed objectively, manifests either intentional or reckless disregard of the attorney’s duties to the court.”

According to the document, attorneys did not correct deficiencies or “false assertions” in the lawsuit against Cuban, which included one plaintiff – Pierce Robinson – allegedly creating a Voyager account five months prior to the Mavericks and Voyager announcing their sponsorship agreement. 

Another plaintiff, Rachel Gold, did not open a Voyager account in her name, and the counsel “submitted multiple false statements in filings with the Court and continued their frivolous pursuit of Ms. Fold’s claims long after they knew she was never a Voyager account holder.” 

In return, Cuban’s counsel argues “only purchasers may bring unregistered securities claims.”

Prior to the filing of the sanctions motion, Cuban’s team had served unfiled Rule 11 motions against “misstatements and the futility of [Florida plaintiffs’] claims.”

According to Cornell Law School, Rule 11 provides “for the striking of pleadings and the imposition of disciplinary sanctions to check abuses in the signing of pleadings.”

If the judge grants the 1927 motion, then Cuban could be awarded “reasonable attorneys’ fees and costs.”

Cuban’s lawyers argued that, “at a minimum,” they’re entitled to the costs “incurred after the fatal flaws of the Florida Plaintiffs’ claims became objectively apparent.”
Cuban previously claimed that the plaintiffs engaged in “transparent forum shopping and gamesmanship.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

Also in the tokenized fund space, Franklin Templeton launches on Base and Securitize hits $1 billion in tokenized RWA onchain

article-image

It turns out that bitcoin never actually hit an all-time high in March. Thanks a lot, inflation.

article-image

Spire, Citrea and Nillion also announced raises this week

article-image

The latest recipient of an SEC Wells notice is a Web3 gaming company

article-image

Thursday’s selloff was led by tech stocks, triggered by disappointing outlooks from giants Meta and Microsoft

article-image

Historically, positive returns have been a bit more of a toss-up during the year’s 11th month