A credit card company promoted by NBA legend Magic Johnson has reportedly closed up shop abruptly after a competitor sued the company for alleged trademark infringement, unfair competition and other charges.
Celebrity Cards International entrepreneur Reed Wallace reportedly filed a law suit against Johnson and Goldman Sachs-turned-Hollywood movie mogul Steven Mnuchin's OneWest Bank, who were backing the credit card, last year in a David versus Goliath legal case.
According to the New York Post, Wallace had alleged in the case that he had a deal with the NBA legend to market and sell a prepaid 'Magic Cash Card', but Johnson had then turned around and 'stuck a knife in his back' by striking a deal with OneWest to launch a similar card instead.
Johnson's legal team reportedly failed to have the case dismissed, and then Wallace's team filling court documents in January asking to depose One West's high-profile billionaire board members George Soros and Michael Dell.
However, months later Wallace reportedly revealed that he had poured everything he had into the suit against Johnson and OneWest and is worried about how he can have enough money to fight the billionaires.
The card's site, without any explanation, has reportedly revealed to its consumers that they are discontinuing their Magic program as of June 30, 2014, and all prepaid cards would be closed at that time, the report added.
