A Florida judge has given preliminary approval to a legal settlement involving three sports stars, allowing them to pay over $2.4 million in monetary relief for their promotion of crypto firm Voyager Digital.
The settlement, announced by lawyers for NFL star Robert Gronkowski, NBA player Victor Oladipo, and Nascar driver Landon Cassill, was granted preliminary approval by Judge Roy Altman in the United States District Court for the Southern District of Florida on June 10. Gronkowski will pay $1.9 million as part of the settlement.
The class-action lawsuit, originally filed against former Dallas Mavericks owner Mark Cuban in 2022, alleged that Cuban misrepresented Voyager’s services, leading to losses for inexperienced investors when the firm declared bankruptcy. If the court gives final approval, the settlement will resolve the case for Gronkowski, Oladipo, and Cassill, but not for Cuban or the Mavericks.
This lawsuit is separate from other legal proceedings involving Voyager debtors since 2022, including bankruptcy court issues and claims at Three Arrows Capital and the now-defunct crypto exchange FTX.
In April, a judge approved a motion for FTX to relinquish rights to around $450 million for Voyager creditors. Additionally, in 2023, a federal judge ordered Voyager and its affiliates to pay over $1.6 billion in monetary relief to the U.S. Federal Trade Commission.
Former Voyager CEO Stephen Ehrlich is facing lawsuits from the U.S. Commodity Futures Trading Commission and the Federal Trade Commission for fraudulent statements regarding the company’s services. These cases are still ongoing.
In other news, there is a documentary about the FTX collapse available on Amazon Prime for $2,500, with assistance from the filmmaker’s mom.