RAJ Sports Lawsuit Challenges Panda Express Founders' Role in Trail Blazers Sale

RAJ Sports Holdings LLC, led by siblings Lisa Bhathal Merage and Alex Bhathal, has filed a lawsuit in Delaware against Andrew and Peggy Cherng, co-founders of Panda Express, alleging that the Cherngs violated an exclusivity agreement during the bidding process for the Portland Trail Blazers. The lawsuit claims that the Cherngs initially committed to RAJ Sports as significant investors in their bid but later joined a competing offer led by Tom Dundon, owner of the NHL's Carolina Hurricanes.

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The lawsuit details that RAJ Sports began assembling its bid for the Trail Blazers shortly after the team was put on the market by the estate of Paul Allen in May 2025. The Cherngs were expected to be the second-largest investors in RAJ's group, which also owns the Portland Thorns and the WNBA's Portland Fire. An exclusivity agreement was signed on July 24, 2025, which prohibited the Cherngs from engaging with other bidders.

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The timeline of events leading to the lawsuit is critical. On August 28, 2025, the Cherngs abruptly ceased discussions with RAJ Sports, citing unexpected pushback on deal points. Despite this, Andrew Cherng assured Alex Bhathal that they were not in talks with Dundon’s group. However, on September 12, the Allen estate announced a formal agreement to sell the Blazers to Dundon, revealing the Cherngs as part of his ownership group.

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The lawsuit alleges that the Cherngs' actions constituted a breach of the exclusivity agreement, claiming they misled RAJ Sports while using privileged information shared during their negotiations.

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The Cherngs have not publicly responded to the lawsuit, and no legal defense has been filed as of yet. The lawsuit seeks to prevent the Cherngs from participating in Dundon’s ownership group and demands restitution for the alleged damages incurred by RAJ Sports due to the breach.

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RAJ Sports asserts that the Cherngs' involvement in two competing bids undermined their opportunity to acquire the Trail Blazers. The lawsuit states, “As a direct result of Defendants’ breaches of the Exclusivity Agreement... RAJ Sports has suffered substantial losses.” Meanwhile, spokespeople for Dundon, the Allen estate, and the NBA have declined to comment on the ongoing dispute.

RAJ Sports Says Investor Deserted Blazers Bid at ‘Final Hour’

The lawsuit is expected to proceed through the Delaware Court of Chancery, where RAJ Sports is seeking a temporary restraining order against the Cherngs. A hearing on this request is anticipated next month. The sale of the Trail Blazers is still pending approval from the NBA's board of governors, which is expected to finalize the transaction by the end of the year.

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• “The Cherngs were eager to participate in Plaintiff’s bid, and, at their direction, the Cherng Family Trust was set to be the largest investor in Plaintiff’s investor group other than the Plaintiff,” — RAJ Sports Lawsuit

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• “Such a final final-hour switch would doom” RAJ’s bid, the lawsuit alleged. — RAJ Sports Lawsuit

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This lawsuit highlights the complexities and competitive nature of NBA team ownership, where financial stakes are high, and legal disputes can arise from perceived breaches of trust and contract.

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