Trail Blazers Sale Draws Suit Against Panda Express Founders (1)

Founders of the Panda Express chain betrayed co-investors trying to purchase the NBA’s Portland Trail Blazers by defecting to another buyer consortium, according to a lawsuit unsealed Friday that seeks to scuttle their involvement.

An affiliate of the Bhathal family is suing Andrew and Peggy Cherng in Delaware’s Chancery Court, saying they breached an exclusivity agreement when they jumped ship to participate in a successful $4.25 billion competing bid led by Tom Dundon, owner of the NHL’s Carolina Hurricanes.

The suit by the Bhathals—who own the WNBA’s Portland Fire, the NWSL’s Portland Thorns, and a piece of the NBA’s Sacramento ...