American football star Trevor Lawrence has reached a settlement in the FTX class-action lawsuit. The terms of the settlement were not disclosed, as is often the case with confidential settlement agreements. Lawrence was among several celebrities who were sued by investors of the bankrupt crypto exchange FTX for their involvement in promoting the platform, which ultimately led to investor losses.
Endorsements of crypto projects can often land celebrities in legal trouble, as investors argue that misleading statements about the project’s legitimacy caused them financial harm. In Lawrence’s case, he had signed a long-term deal with FTX’s Blockfolio app and received a significant signing bonus paid in cryptocurrency.
YouTube influencers Kevin Paffrath and Tom Nash have also agreed to settle in the class-action suit against them. The plaintiffs’ lawyers stated that they are engaged in ongoing settlement discussions with other defendants named in the suit.
Other celebrities named in the lawsuit include Tom Brady, Gisele Bundchen, Stephen Curry, Shaquille O’Neal, Naomi Osaka, Udonis Haslem, Larry David, and Kevin O’Leary. FTX is seeking to recover payments made to these celebrities and others, including GameStop, Fortune Media, and Coachella Music Festival.
Notably, FTX made a payment of $3.4 million to secure naming rights for the Miami Heat’s arena, which was subsequently changed after FTX’s collapse.
Hot Take: Celebrities such as Trevor Lawrence face legal consequences when endorsing crypto projects without thorough due diligence. Investors argue that misleading statements can cause financial losses. Settlements like these are common but often kept confidential. It is essential for both parties to be cautious while making endorsements and ensure transparency to avoid lawsuits that tarnish reputations and lead to financial liabilities.
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