NFL quarterback Trevor Lawrence, alongside YouTube influencers Kevin Paffrath and Tom Nash, has agreed to settle a lawsuit associated to their endorsement of the now-defunct FTX cryptocurrency alternate, Bloomberg reported on Sept. 16, citing a court docket submitting.
The phrases of the settlement stay undisclosed. These settlements mark the primary resolutions amongst over a dozen celebrities and corporations accused of helping Sam Bankman-Fried, the founding father of FTX, in duping buyers. Bankman-Fried is ready to face his prison trial in Manhattan subsequent month.
Different high-profile people, together with Tom Brady, Gisele Bundchen, Steph Curry, Shaquille O’Neal, and Larry David, who endorsed FTX, are additionally dealing with lawsuits. These class-action fits are consolidated in a federal court docket in Miami, together with complaints in opposition to enterprise capital and personal fairness corporations that invested in FTX, corresponding to Sequoia Capital and Thoma Bravo.
FTX garnered important consideration by movie star endorsements, together with naming rights to the Miami Warmth’s area and a Tremendous Bowl industrial that includes Larry David. Attorneys representing the plaintiffs within the $1 billion case in opposition to endorsers informed Bloomberg that they’re “engaged in ongoing confidential, settlement discussions” with different defendants, and there’s a “chance that different FTX settlements shall be reached.”
The lawsuit alleges that FTX’s movie star endorsements contributed to the platform’s rise however asserts that the endorsers did not disclose particulars of their offers and compensation to buyers. On the time of submitting, the lawsuit acknowledged:
“Although FTX paid Defendants handsomely to push its model and encourage their followers to speculate, Defendants didn’t disclose the character and scope of their sponsorships and/or endorsement offers, funds and compensation, nor conduct ample (if any) due diligence.”
Lawrence, the primary general NFL draft decide in 2021, signed an endorsement cope with FTX, receiving a $500,000 cost in cryptocurrency. Kevin Paffrath, referred to as a “landlord influencer,” promoted FTX on his YouTube channel, “Meet Kevin,” for which he was allegedly paid $2,500 for every point out of the platform.
Attorneys for the endorsers argue that the ads didn’t encourage customers to really deposit cash into FTX accounts. Furthermore, the legal professionals keep that the endorsers had no hand within the alleged “FTX’s misappropriation and mismanagement.”
After FTX collapsed in November 2022, Paffrath and Nash eliminated their FTX endorsements from their YouTube channels and issued apologies.
