According to reports, YouTubers Tom Nash and Kevin Paffrath as well as NFL star Trevor Lawrence chose to reach a settlement with investors who claimed their FTX advertisements deceived them
According to reports, a lawsuit against NFL quarterback Trevor Lawrence and YouTube stars Kevin Paffrath and Tom Nash over alleged insufficient remuneration disclosure in their advertisements for the now-defunct cryptocurrency exchange FTX has been resolved.
The three well-known people have reportedly accepted proposed deals, however the terms of the settlement were not made public, according to a recent Bloomberg story. Lawrence, Paffrath, and Nash are apparently the first prominent figures involved in the class-action case to have struck a settlement.
The class-action lawsuit also names Tom Brady, Gisele Bündchen, Kevin O’Leary, Shaquille O’Neal, Naomi Osaka, and David Ortiz as defendants.
Paffrath and Nash are two of the eight YouTubers who have been charged for failing to declare payments. Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, and Erika Kullberg make up the remaining six. The lawsuit also names Creators Agency, the talent agency responsible for the promotion of FTX.
On September 11, it was reported in a court document that FTX is considering how it might recoup the millions of dollars it paid to professional sports teams and celebrities to advertise the cryptocurrency exchange before it went bankrupt in November 2022. According to the filing, Kevin O’Leary earned the most money ($2,348,338), followed by Shaquille O’Neal ($750,000) and Trevor Lawrence ($205,555).
FTX influencers were accused of failing to fully disclose the fact that their FTX promos were actually paid material rather than content sparked by genuine interest when the class action lawsuit was first filed on March 15
“Although FTX paid Defendants handsomely to promote its brand and persuade their followers to make investments, Defendants failed to disclose the nature and extent of their sponsorship and/or endorsement deals, payments, and compensation, nor did they conduct adequate (if any) due diligence.”