A Florida judge has granted preliminary approval to a legal settlement involving three well-known sports figures. The settlement requires them to pay over $2.4 million in monetary relief for their alleged promotion of crypto firm Voyager Digital.
NFL star Robert Gronkowski, NBA player Victor Oladipo, and Nascar driver Landon Cassill reached an agreement to collectively pay approximately $2.4 million to settle the case, with Gronkowski contributing $1.9 million alone. The class-action lawsuit, originally filed against former Dallas Mavericks owner Mark Cuban in 2022, claimed that he misrepresented Voyager’s services, resulting in losses for inexperienced investors when the firm declared bankruptcy.
If finalized by the court, the settlement would resolve the matter for Gronkowski, Oladipo, and Cassill, but not for Cuban or the Mavericks. The lawsuit is separate from other legal battles involving Voyager creditors, including disputes with Three Arrows Capital and the now-defunct crypto exchange FTX.
In a separate development, a judge approved a motion in April for FTX to relinquish around $450 million in funds to compensate Voyager creditors. Additionally, a federal judge ordered Voyager and its affiliates to pay over $1.6 billion in monetary relief to the U.S. Federal Trade Commission in 2023.
Former Voyager CEO Stephen Ehrlich is facing lawsuits from the U.S. Commodity Futures Trading Commission and the Federal Trade Commission for allegedly making fraudulent statements about the company’s services. These cases are still ongoing.
In other news, there is a $2,500 documentary on the collapse of FTX available on Amazon Prime, with assistance from the CEO’s mother.