A lawsuit related to the sale of the Portland Trail Blazers has been resolved, seemingly clearing the way for an investment group led by Tom Dundon to purchase the NBA franchise.
The lawsuit, filed in September by RAJ Sports Holding LLC, alleged the deep-pocketed founders of Panda Express breached an exclusivity agreement and sought to bar them from joining Dundon’s investment group.
The case was scheduled for its first court hearing Wednesday.
But on Monday afternoon, a notice of dismissal was filed with the Delaware Court of Chancery, which was hearing the case. The filing doesn’t provide details about terms of the settlement, and it’s unclear what prompted the abrupt turn.
“We are pleased to have reached a resolution out of court which we believe recognizes our position while also preserving the future of basketball in Portland,” RAJ Sports said in a statement. “We look forward to working closely with the Trail Blazers as the Fire join them at Moda Center next spring.”
RAJ Sports declined to comment on specifics of the settlement, including whether the company received any financial compensation for withdrawing the lawsuit. A source with knowledge of the situation said RAJ Sports will not receive any ownership stake in the Blazers if Dundon’s deal proceeds.
RAJ Sports owns the Portland Thorns women’s soccer team and the Portland Fire, the city’s new WNBA team. It’s led by siblings Lisa Bhathal Merage and Alex Bhathal, whose new basketball franchise will share the same arena with the Trail Blazers.
RAJ Sports had been among the suitors to buy the Trail Blazers from the estate of Paul Allen. RAJ Sports alleged in its lawsuit that it had an exclusive deal with the founders of Panda Express and were negotiating for them to be part of their proposed ownership group.
But Andrew and Peggy Cherng ultimately joined Dundon’s competing bid. The Cherngs have not commented publicly on the lawsuit. Legal representatives for the family did not immediately return messages.
Last week, Dundon filed a declaration in the lawsuit in which he said he’s “expecting to close the acquisition of the Trail Blazers without needing funding from the Cherngs,” seemingly an effort to take the wind out of the legal challenge.
The purchase price: $4.25 billion.
It’s not immediately clear what bearing Monday’s surprise announcement will have on the Cherngs’ involvement going forward.
This is a breaking story and may be updated.
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