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Mark Cuban to be Questioned in Voyager Digital Promotions Case

Image Source: Entrepreneur (1.1)

According to an order (1) from the court, multibillionaire Mark Cuban will be questioned about his promotion of the now-defunct crypto currency lender Voyager Digital on February 2 in Dallas, Texas. As part of the class-action lawsuit that investors brought in, Mark Cuban, the owner of the Dallas Mavericks, will give a deposition.

During a deposition, you will be required to answer questions under oath, and your responses will be recorded as formal statements that can be utilized during the trial.

Cuban's plea to have his deposition divided into two parts was denied by the United States magistrate court Lisette M. Reid on January 6. The District Court for the Southern District of Florida's Judge Reid ordered that Cuban's deposition not be restricted to questions regarding jurisdictional issues.

Depositions of Dallas Mavericks staffers Ryan Mackey and Kyle Tapply are scheduled to take place by the deadline of February 23, per an order by Reid. According to the order from the court, all of the discovery evidence pertaining to Mackey and Tapply must be delivered to the plaintiffs no later than the end of January.

In addition, the judge issued an order requiring the deposition of three plaintiffs based in Florida to be completed by January 24. According to the order, the plaintiff Pierce Robertson and Rachel Gold will each be deposed this week, while Sanford Gold will have his deposition on either January 23 or 24.

According to the court ruling, non-party Eric Rares will also have to give a deposition by either the 23rd or the 24th of January. In addition, the judge gave the plaintiffs until January 13 to present any evidence on their Voyager accounts and any papers related to those accounts.

The Attorneys Speak

Cuban's "attempts to stay and delay discovery" were unsuccessful in the court's eyes, which pleased the attorney for the plaintiffs. The attorney for the plaintiff said the following in a statement (2) that was provided to Law360:

"We have been litigating on behalf of hundreds of injured Voyager investors for more than a year, and we will finally be able to uncover evidence of what transpired. We will finally be able to uncover evidence of what transpired, and we will fully understand to what extent Mr. Cuban, and his Dallas Mavericks, were involved in the 'offering' of these unregistered securities" and "to what extent he was to profit."

According to Cuban's attorney, who spoke with Law360, the plaintiffs' deposition will cover

"issues of standing alleged false statements included in the complaint, and questions about the Voyager accounts held by the plaintiffs." [Cuban] is the defendant in the lawsuit.

On August 10, a class-action lawsuit was brought (3) against Cuban, saying that Cuban misrepresented Voyager many times and advertised it as cheap and commission-free. The suit was submitted to the United States District Court for the District of Columbia.

On July 5, Voyager filed for bankruptcy, just a few days after the hedge fund Three Arrows Capital (3AC), which owed Voyager more than $650 million, ceased operations. Voyager was due the money.

Over 3.5 million customers have filed over $5 billion claims against Voyager.

Plaintiffs claim that Cuban should be held liable for his actions because he solicited "unsophisticated investors" with "false and misleading promises" of significant investment returns. According to the plaintiffs' allegations, Voyager was similar to a Ponzi scheme.