Credit Checked! Magic Johnson Being Sued Over Prepaid Cards

Magic Johnson is the latest A-list star to get into a legal battle over prepaid credit cards in their name. Florida-based Celebrity Cards International filed a suit yesterday in Florida District court claiming the NBA Hall of Famer broke an agreement to market and sell a Magic Cash Card, and in turn made a similar deal with a competitor, OneWest Bank.

The suit claims Celebrity Cards’ CEO Reed Wallace struck a deal with Johnson to market the cards with his image, and in 2004 sold 2,000 Magic Cards through direct response ads on TV. But shortly after, wrangling over ownership of the trademark began when Wallace’s company was bought.

According to the suit, Wallace was able to reacquire ownership of Johnson’s trademark, but Johnson had filed a cancellation action and partnered with OneWest to release its own Magic Cards without permission from Celeb Cards. According to Celeb Cards lawyer Robert Hantman, “The actions of defendants are so shocking and appalling . . . and so out of character for Magic Johnson that it is hard to believe, but justice will prevail if not ‘by Magic. ’

Several months ago, we were alerted to this story via someone who knows the ins and outs about Trademark laws and they too believed these dealings involving the NBA legend appeared to be a bit shady.

This is a developing story so check back for updates as they unfold.

Source: NY Post

Follow us on twitter@hiphopenquirer