District of New Jersey Throws Out $150 Million Damages Claim From Sports Leagues

On behalf of the NCAA, NBA, NFL, NHL and MLB, Skadden secured the complete dismissal of a motion by the New Jersey Thoroughbred Men’s Association (NJTHA) to recover over $150 million in purported damages resulting from an injunction that barred the NJTHA from conducting sports betting operations. On November 16, the District of New Jersey agreed with the leagues that, notwithstanding this year’s Supreme Court ruling striking down the statute under which the leagues obtained relief, (1) the NJTHA could not establish that it was wrongfully enjoined in 2014, and (2) even if NJTHA could meet that standard, there nevertheless was good cause to refuse any recovery under a $3.4 million temporary restraining order bond — or an award of over $150 million that NJTHA sought in additional damages — given the factual and procedural circumstances of the case.