Sports Stars to Pay $2.4M in Preliminary Settlement over Crypto Firm Endorsement
Summary:
A Florida judge has given initial approval to a $2.4 million settlement in a lawsuit involving three sports stars, NFL's Robert Gronkowski, NBA's Victor Oladipo, and Nascar's Landon Cassill, in relation to their endorsement of the crypto firm Voyager Digital. The lawsuit accused them and billionaire Mark Cuban of misrepresenting the company's services, leading to investment losses when Voyager filed for bankruptcy. This settlement, if given final approval, won't resolve matters for Cuban or the Mavericks. The former Voyager CEO, Stephen Ehrlich, concurrently faces lawsuits from two U.S. commissions.
A Florida judge has given initial consent to a legal accord involving three athletes, which mandates their payment of over $2.4 million in restitution in response to accusations of endorsing the digital currency business Voyager Digital. The provisional endorsement for an agreement for a group of plaintiffs was sanctioned on June 10 by Judge Roy Altman of the U.S. District Court for the Southern District of Florida. The individuals involved in the lawsuit are NFL player Robert Gronkowski, NBA professional Victor Oladipo, and Nascar driver Landon Cassill. Legal representatives for the trio publicized in May that an overall sum of approximately $2.4 million had been agreed upon to navigate the settlement, with Gronkowski personally committing to $1.9 million.
The class action lawsuit initially poised against ex Dallas Mavericks owner Mark Cuban in 2022, implicated the entrepreneur in the misrepresentation of Voyager's services, leading to losses for novice investors when the company went bankrupt. If the court provides final confirmation, the suggested settlement would settle the dispute for Gronkowski, Oladipo, and Cassill but not handsomely for Cuban or the Mavericks.
This civil case is not associated with other legally contentious issues in which Voyager indebted parties have been implicated since 2022. Voyager had been encountering bankruptcy court trials and addressing claims related to funds at Three Arrows Capital and the now-inoperative digital currency exchange, FTX. In April, a judge authorized a motion which relinquished "any and all rights" FTX had on approximately $450 million, which were to be allocated toward compensating Voyager's creditors. In 2023, a federal judge gave consent to an order that Voyager and its partnering entities would pay an excess of $1.6 billion in restitution to the U.S. Federal Trade Commission.
Concurrent lawsuits have been lodged against the former Voyager CEO Stephen Ehrlich, by the U.S. Commodity Futures Trading Commission and the Federal Trade Commission. These lawsuits accused Ehrlich of fraudulent assertions related to the services provided by the firm. These court cases were still in progress at the time of the release of this news piece.
Published At
6/11/2024 9:38:00 PM
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