NFL star Trevor Lawrence and 2 YouTube influencers settled the FTX endorsement class-action: Report
While the terms of the settlements remain undisclosed, they mark the first resolutions amid the many suits against FTX endorsers....
- NFL quarterback Trevor Lawrence, along with YouTube influencers Kevin Paffrath and Tom Nash, has settled a lawsuit related to their endorsement of the now-defunct FTX cryptocurrency exchange.
- The terms of the settlement remain undisclosed.
- This is the first resolution among over a dozen celebrities and firms accused of assisting FTX founder Sam Bankman-Fried in duping investors.
- Other high-profile individuals, including Tom Brady, Gisele Bundchen, Steph Curry, Shaquille O’Neal, and Larry David, who endorsed FTX, are also facing lawsuits.
- The lawsuits are consolidated in a federal court in Miami, along with complaints against venture capital and private equity firms that invested in FTX.
- FTX gained attention through celebrity endorsements, including naming rights to the Miami Heat’s arena and a Super Bowl commercial featuring Larry David.
- Lawyers representing the plaintiffs in the $1 billion case against endorsers are engaged in ongoing settlement discussions with other defendants.
- The lawsuit alleges that endorsers failed to disclose details of their deals and compensation to investors.
- Lawrence received a $500,000 payment in cryptocurrency for his endorsement deal with FTX.
- Paffrath allegedly received $2,500 for each mention of FTX on his YouTube channel.
- Lawyers for the endorsers argue that the advertisements didn't encourage users to deposit money into FTX accounts.
- Paffrath and Nash removed their FTX endorsements from their YouTube channels and issued apologies after FTX collapsed.
The sentiment of the article is negative, as it discusses a lawsuit related to the endorsement of a now-defunct cryptocurrency exchange and accuses endorsers of failing to disclose details of their deals and compensation to investors.