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.”


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone

Research

Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.

/

article-image

OP holders might not be feeling very optimistic with the rollup’s token unlock schedule now in effect

article-image

Two lords are pushing for the government to ensure that the Bank of England could not implement “Britcoin” without legislative backing

article-image

This is the second fee switch proposal that failed to pass a community vote

article-image

This partnership comes as Nike released its first NFT collection, Our Force 1, this month

article-image

The weaknesses of large language models like ChatGPT are “too great to use reliably for security,” OpenZeppelin’s machine learning lead says

article-image

Giddy will now enable users to spend their yield on real-world goods and services