Lawsuit over Trail Blazers ownership deal dropped, clearing path for sale

The owners of the Portland Fire and Thorns have dropped their lawsuit against one of the minority investors in the group that intends to buy the Portland Trail Blazers. The end of the legal battle should clear the path for a group led by Tom Dundon to continue with its purchase of the NBA franchise.

RAJ and the Cherng family have reached a deal out of court. Dundon helped facilitate a resolution.

“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,” a RAJ Sports spokesperson said. “We look forward to working closely with the Trail Blazers as the Fire join them at Moda Center next Spring.”

RAJ Sports, run by siblings Alex and Lisa Bhathal Merage, claimed in its initial suit that Andrew and Peggy Cherng had agreed to exclusively work with them to buy the Blazers and had an agreement signed on July 24, 2025. They continued to work together through the summer, even after news reports said that Dundon and his group were going to buy the team, RAJ Sports said. But on Sept. 12, when the Dundon group announced a purchase agreement for the team, the Cherngs were among their listed investors.

RAJ Sports told a judge in Delaware state court Monday that it was dismissing its lawsuit against the Cherng family “without prejudice.” It made its filing just 19 days after it sued the Cherngs — owners of the fast food chain Panda Express — alleging they broke an exclusivity agreement to jointly pursue a bid for the Blazers, then switched sides to join the Dundon group.

The lawsuit had been set to move forward later this month, with a hearing scheduled for Wednesday.

Dundon is hoping to close his $4.25 billion purchase by the spring of 2026. He is joined by private equity executives Marc Zahr and Sheel Tyle in his bid.

The lawsuit asked a judge to stop the Cherngs from being a part of the Dundon group and hoped that it would grant RAJ Sports a temporary restraining order to stop them from proceeding as a part of the sale.