Trevor Lawrence, the NFL player, has reportedly joined forces with YouTubers Kevin Paffrath and Tom Nash to address the concerns raised by investors regarding the alleged deceptive nature of their FTX promotions.
NFL quarterback Trevor Lawrence, along with YouTube influencers Kevin Paffrath and Tom Nash, have reportedly come to an agreement in a lawsuit regarding the alleged lack of disclosure concerning compensation in their promotions for the now-defunct cryptocurrency exchange FTX.
According to a Sept 16 Bloomberg report, three prominent individuals have entered into proposed agreements. However, the specific terms of the settlement remain undisclosed.
First-person celebrities and influencers, Lawrence, Paffrath, and Nash reportedly stand out among those involved in the high-profile class-action lawsuit. They have achieved a significant milestone by successfully negotiating a settlement.
The class-action lawsuit names additional celebrity defendants, which include Tom Brady, Gisele Bündchen, Kevin O’Leary, Shaquille O’Neal, Naomi Osaka, and David Ortiz.
YouTube Stars Face Accusations In FTX Lawsuit: Paffrath, Nash, & More
Paffrath and Nash and six other YouTubers (Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, and Erika Kullberg) are currently facing accusations of not disclosing their compensation. Additionally, the lawsuit includes Creators Agency, the talent management company responsible for promoting FTX.
A court filing on Sept 11 revealed that FTX is currently exploring options to recover the substantial amounts of money it had provided to well-known athletes and sports teams for endorsing the cryptocurrency exchange. This occurred before its insolvency in Nov 2022.
According to the document, Trevor Lawrence was granted $205,555. Additionally, Shaquille O’Neal received an approximate amount of $750,000 while Kevin O’Leary obtained the highest payout with a fee totalling $2,348,338
The class-action lawsuit was filed on Mar 15, alleging that the influencers failed to disclose the true nature of their FTX promotions. Rather than authentic interest, these upgrades were essentially paid content.
FTX generously compensated the defendants to endorse and promote its brand, urging their followers to invest. However, the defendants failed to disclose crucial information about their sponsorship and endorsement agreements, as well as the payments and compensation they received. Additionally, their due diligence efforts were insufficient or nonexistent.
Related Reading | Arbitrium Price Falls Slightly -1.53% Today, But Still Up In The Past Week
“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
Comments (No)