Mark Cuban to face questioning under oath over promotion of Voyager
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Dallas Mavericks owner Mark Cuban is set to be “deposed” next month as part of a defense against a proposed class-action lawsuit alleging that he promoted an alleged “ponzi-scheme” in the form of now-bankrupted crypto lender Voyager Digital.
A deposition in legal terms generally refers to answering a line of questioning under oath during the pre-trial discovery stage of a potential court case.
In a Jan. 9 court
Cuban’s counsel also spoke to Law360 and noted that the deposition of the plaintiffs will cover “issues of standing, alleged false statements included in the complaint and questions about the Voyager accounts held by the plaintiffs.”
Related: Voyager tells court Binance acquisition plan is ‘sound business judgment,’ urgently needed
The lawsuit in question was initially filed on Aug. 10, 2022, with the plaintiffs alleging that Cuban misrepresented Voyager on numerous occasions before it went bankrupt, making dubious claims of it being cheaper than competitors and offering “commission-free” trading services.
The suit also alleges that the firm offered unregistered securities and that Cuban and Voyager CEO Stephen Ehrlich utilized their sophisticated experience to rope uneducated investors to pour their life savings into what they now feel to be a “ponzi-scheme.”
Voyager officially entered into chapter 11 bankruptcy Jul. 6 last year. After facing liquidity issues as a result of crypto winter and a hefty loan to Three Arrows Capital that was defaulted on, the firm emphasized that the move was part of a ““Plan of Reorganization.”
