RAJ Sports Drops Lawsuit Against Cherngs Over Trail Blazers Ownership Sale

A lawsuit related to the sale of the Portland Trail Blazers has been resolved, paving the way for an investment group led by Tom Dundon to purchase the NBA franchise.

RAJ Sports Alleged Cherngs Violated Exclusivity Agreement

The lawsuit, filed in September by RAJ Sports Holding LLC, alleged the co-founders of Panda Express breached an exclusivity agreement and sought to block them from joining Dundon’s investment group.

In mid-September, Paul Allen’s estate said it had reached a deal to sell the Trail Blazers to a group led by Dundon that included investment from Andrew Cherng and Peggy Tsiang Cherng, who founded Panda Express and have a net worth of $7.5 billion.

RAJ Sports, the owners of the Portland Thorns and new WNBA team Portland Fire, filed a notice of dismissal with the Delaware Court of Chancery to resolve the lawsuit against the Cherng Family Trust, run by the Cherngs.

The two groups reportedly worked together for months on a bid to purchase the Trail Blazers, but the Cherng family allegedly violated a July 24 confidentiality agreement during the sales process.

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

Tom Dundon, Investment Group Purchased Trail Blazers For $4.25 Billion

Last week, Dundon filed a declaration in the lawsuit in which he said he’s “expecting to close the acquisition of the Trail Blazers without needing funding from the Cherngs.”

Dundon’s group also includes Portland-based Sheel Tyle, the co-founder of investment firm Collective Global, and Marc Zahr, co-president of Blue Owl Capital.

In August, Dundon and his investment group purchased the Blazers for $4.25 billion. A target date of March 31, 2026, has been set for the close of the deal, per The Athletic’s Jason Quick.

The current deal remains tentative until the NBA Board of Governors can ratify the agreement.

If the sale is approved by the scheduled closing date of March 31, the new owners will take over with six games remaining in the 2025-26 season.