Voyager wants the court to stop investors’ lawsuits against the duo to protect its claims.
Leading digital asset company Voyager has requested that the court overseeing its bankruptcy filing should stop a lawsuit against its CEO Stephen Ehrlich and Dallas Mavericks owner Mark Cuban.
Legal news outlet Law360 reported recently that Voyager claimed the aggrieved investors are trying to circumvent litigation stay put in place after the crypto firm sought Chapter 11 protection.
“It is obvious that the Robertson complaint simply attempts to circumvent the automatic stay while still charging the debtors with grievous wrongs,” Voyager said, adding:
“If it were this easy to circumvent the automatic stay — merely by removing debtors as defendants in litigation and adding their CEO in their place — the stay would be rendered nullity.”
Although lawsuits against companies in bankruptcy are automatically halted, the same does not apply to the company’s executives or other third parties.
However, the court can choose to extend the temporary protection that the company has to its executive and other third parties.
According to Law360, Voyager has asked U.S. Bankruptcy Judge Michael Wiles to stop the lawsuit against Ehrlich, as any claims against the CEO would also affect the company’s claims.
Voyager urged the court to halt the lawsuit until a plan is in place in the Chapter 11 proceedings.
Per a lawsuit filed two weeks ago, a group of Voyager investors alleges that both Ehrlich and Cuban made deceitful claims to lure unsuspecting investors.
The plaintiffs include Pierce Robertson, Dan Newsom, Sanford Gold, Rahil Sayed, Christopher Ehrentraut, William Ayer, Rachel Gold, Anthony Dorn, Dameco Gates, Marshall Peters, Todd Manganiello, and Edwin Garrison.
The investors allege that both Cuban and Ehrlich reached out to people to purchase Voyager’s “unregistered securities.”
“Cuban and Ehrlich … went to great lengths to use their experience as investors to dupe millions of Americans into investing — in many cases, their life savings — into the deceptive Voyager platform and purchasing Voyager Earn Program Accounts (‘EPAs’),” excerpt of the complaint reads.
Adam Moskowitz, the Plaintiffs’ attorney, told Law360 this week:
“These forms of pleadings to delay our efforts are confusing — the debtor claims on one hand that these important and very serious allegations against Mark Cuban belong to them, but they also seek to delay any of our efforts.”
Moskowitz assured that the Dallas Mavericks owner would not be given a pass for the role he played in luring investors to Voyager.