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RAJ Sports Sues to Block Panda Express Founders From Trail Blazers Deal Over Alleged Exclusivity Breach

A Delaware court will soon consider RAJ Sports’ request for a restraining order that could pause the Cherngs’ planned minority stake in Tom Dundon’s announced purchase.

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Troy Wayrynen-Imagn Images
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Overview

  • RAJ Sports unsealed a Delaware Court of Chancery complaint alleging Andrew and Peggy Cherng violated a July 24 confidentiality and exclusivity agreement by joining Tom Dundon’s investor group.
  • The filing seeks a temporary restraining order to bar the Cherng Family Trust from entering any agreement involving the Blazers, with a hearing expected in the coming weeks.
  • According to the suit, the Cherngs were slated as an anchor investor for RAJ’s competing bid, said "pencils down" on Aug. 28, received updates on Sept. 5, and were later named in the Sept. 12 sale announcement with Dundon.
  • The lawsuit names only the Cherngs as defendants, not Dundon, the Paul G. Allen estate, the Trail Blazers, or the NBA, and the sale remains subject to NBA Board of Governors approval.
  • Legal observers say Chancery Court could move quickly and that any injunction could delay closing or force a replacement investor, while a denial could leave the Cherngs to proceed as litigation over potential damages continues.