Tuesday, June 25, 2013
NBA Basketball Hall of Famer and entrepreneur Earvin "Magic" Johnson is reportedly involved in a lawsuit concerning his supposed violation of contractual obligations for a prepaid debit card that bore his name. A June 20, 2013, report in The New York Post said Florida-based prepaid card provider Celebrity Cards International sued Johnson in Florida District court, claiming the former basketball player broke an agreement to market and sell the Magic Cash Card.
The suit claims that the contract between Celebrity Cards and Johnson resulted in the sale of 2,000 of the cards in 2004 through direct-response television advertisements, but that Johnson then tried to back out of the contract. Johnson subsequently partnered with OneWest Bank FSB of Southern California for the Magic Card from Magic Johnson, a MasterCard Worldwide-branded, general-purpose reloadable card product. The report said Johnson entered into the agreement with OneWest without permission from Celebrity Cards.
Johnson is Chairman and Chief Executive Officer of Magic Johnson Enterprises, which operates in several industries, including food service, where it runs Starbucks Coffee Co. locations in inner city neighborhoods. Johnson debuted the OneWset Bank-issued Magic card in June 2012.
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