A federal judge has tossed a cryptocurrency investor lawsuit against Mark Cuban and the Dallas Mavericks, ruling the plaintiffs failed to establish personal jurisdiction in Florida — a decision that could complicate efforts to hold national celebrity endorsers accountable in state courts. Judge Roy K. Altman of the U.S. District Court for the Southern District of Florida said there was an insufficient legal connection between Florida and the alleged promotional activity to justify hearing the case. Crucially, the ruling addressed jurisdictional reach, not whether Cuban’s or the Mavericks’ promotions were misleading or improper. What the suit alleged - The 2022 complaint accused Cuban and the Mavericks of using their public platform to promote Voyager Digital’s products, which plaintiffs say contributed to investor losses after the crypto lender’s bankruptcy. - Plaintiffs pointed to Cuban’s October 2021 comments at a Mavericks news conference that he had personally invested in Voyager, and to a Mavericks promotion that offered $100 in Bitcoin to customers who downloaded the Voyager app, opened an account, deposited $100 and completed a trade. Why the court dismissed the case - Judge Altman concluded that nationwide or online promotions do not automatically equal purposeful targeting of Florida residents under the state’s long-arm statute or constitutional due-process requirements. - The case was dismissed without prejudice, meaning the plaintiffs may attempt to refile in another jurisdiction. Defense response Cuban’s lawyers argued neither he nor the team specifically targeted Florida residents and noted Cuban had repeatedly cautioned people to be careful with their money when speaking publicly about crypto. Brown Rudnick, the law firm representing Cuban and the Mavericks, said the dismissal followed years of litigation and jurisdictional discovery and praised the decision, noting the court rejected the idea that broad national marketing alone can create jurisdiction in any state where an investor claims harm. “We couldn’t be more pleased with the absolute right result,” lead counsel Steve Best told ESPN. He added plaintiffs may seek a different venue, but that the defense will contest claims wherever they’re brought and that Cuban “doesn’t settle when he believes he is on the right side of the law.” Broader context Voyager filed for Chapter 11 bankruptcy protection in July 2022 after market losses and counterparty failures. At its peak in 2021, the company reportedly held more than $5 billion in assets and served nearly 3.5 million customers. Voyager’s collapse sparked a wave of litigation against executives, partners and celebrity promoters as investors tried to clarify the legal limits of crypto marketing and endorsements. Other notes Cuban sold his majority stake in the Mavericks to casino magnate Miriam Adelson in late 2023 but retained a minority interest and continued involvement in basketball operations. Why it matters The ruling underscores a legal hurdle for plaintiffs seeking to use state courts to pursue claims against national or online crypto promotions: proving that defendants purposefully targeted residents of that forum remains a high bar. Plaintiffs can still refile elsewhere, but the decision may shape strategy in future suits against celebrities and sports teams over crypto endorsements. Read more AI-generated news on: undefined/news

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