Three American sports personalities, Rob Gronkowski, Victor Oladipo, and Landon Cassill, agreed on May 3 to collectively pay $2.42 million to settle allegations in the Voyager promotion case.
The settlement involving the trio’s promotion of the defunct crypto exchange Voyager Digital provides a detailed look at the financial implications and legal aspects of their involvement.
Plaintiffs in Voyager Promotion Case Targets $792K Attorney Fees Payment
Retired NFL icon Gronkowski agreed to pay the highest amount, $1.9 million. OKC Thunder Guard Oladipo settled for $500,000, while NASCAR driver Cassill agreed to pay $25,000.
GRONKOWSKI AND OTHERS TO SETTLE CRYPTO INVESTOR SUIT FOR $1.9M
– Former NFL star Rob Gronkowski agrees to pay $1.9 million to settle claims from former customers of Voyager Digital, a cryptocurrency lender.
– The settlement, subject to court approval, involves Gronkowski, NBA… https://t.co/jcP9n0sXnz pic.twitter.com/hBnaiiACwB
— BSCN (@BSCNews) May 7, 2024
In addition to the settlement, the plaintiffs also seek $792,000 in attorney fees.
Unlike the other defendants, Gronkowski was more involved with Voyager. The NFL player was a partner, VGX token holder, shareholder, and ambassador for the exchange.
According to court documents, the settlement was negotiated through mediation aimed to discover whether Voyager’s products were unregistered securities and if the promoters improperly solicited investors.
Voyager Digital filed for bankruptcy in July 2022 due to severe market turmoil triggered by the Terra/Luna collapse in May 2022 and the default of loans to the Three Arrows Capital (3AC) hedge fund. This series of events ultimately led to the exchange’s downfall.
In April 2024, however, Voyager took steps towards compensating creditors by securing $484 million through settlements with FTX, Three Arrows Capital, and Directors and Officers (D&O) insurance claims. The settlement, including interest, covers around 25% of Voyager creditors’ total claims and is expected to be distributed soon.
Alongside the FTX agreement, Voyager has secured a claim of about $675 million from its ongoing litigation with Three Arrows Capital. Within this sum, $20.43 million constitutes Voyager’s share of the initial distribution from 3AC.
Will Mark Cuban Settle?
While the sports personalities have agreed to settle the case, the main defendant has yet to come to the table.
In 2022, a class action was filed against Mark Cuban, the minority owner of the Dallas Mavericks. In 2023, the other sports influencers were added to the suit.
The sports billionaire’s trial is scheduled to begin in November 2024 for his involvement in promoting Voyager’s Earn Program Accounts (EPAs), which were classified as unregistered securities.
Voyager Digital Class Action Lawsuit: Defendants Robert Gronkowski, Victor Oladipo & Landon Cassill settle for combined $2,425,000. ~33% Attorney fees leave $1.62 million. Motion not finalized. Still lawsuits against Mark Cuban, Dallas Mavericks, NBA, McCarter & English & Ketchum pic.twitter.com/9EbVrDZHAM
— JDW_007 (@007_jdw) May 4, 2024
The NBA and Cuban are also facing a lawsuit for alleged “gross negligence” in their marketing partnership with the defunct crypto exchange. The trial against Cuban and the Dallas Mavericks is set for November 2024.
NBA’s decision to support the partnership between Voyager Digital and the Dallas Mavericks has elicited criticisms as a former SEC official suggested an NBA ban on crypto sponsorships.
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