Voyager Digital, which has filed for Chapter 11 bankruptcy, has filed an adversary complaint to extend automatic stay or an injunction preventing further prosecution of a lawsuit.

In 2021, a certain plaintiff filed a putative class action lawsuit against Voyager, alleging improprieties in Voyager’s cryptocurrency business (“Cassidy case”). That case was litigated for approximately six months.

When Voyager initiated these chapter 11 cases, they filed a suggestion of bankruptcy in the Cassidy case, and the district court entered an administrative stay the next day.

When the attorneys pursuing the Cassidy case saw their case stayed pursuant to 11 U.S.C. § 362, they did not honor that statute and pursue relief from the stay from this Court. Instead they restyled the Cassidy case as a lawsuit against the Debtors’ chief executive officer and co-founder, Stephen Ehrlich. (Robertson Complaint).

According to Voyager, in an effort to gain media attention, plaintiffs also added as a defendant the Dallas Mavericks basketball team and its owner, Mark Cuban. Voyager says that the Robertson Complaint simply attempts to circumvent the automatic stay while still charging the Debtors with grievous wrongs. It literally incorporates the bulk of the plaintiffs’ prior complaint against the Debtors and asks a court to hold the Debtors’ CEO and Mr. Cuban responsible for the Debtors’ alleged misconduct.

Voyager argues that the Court should extend the automatic stay pursuant to section 362 to cover Robertson, or issue an injunction pursuant to section 105 to enjoin the continuation of Robertson.