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Settlement Reached in Voyager Digital Promoters Lawsuit

Settlement Reached in Voyager Digital Promoters Lawsuit

May 7, 2024

Settlement Reached in Voyager Digital Promoters Lawsuit

In a recent development related to the bankruptcy of Voyager Digital, former NFL star Rob Gronkowski has agreed to pay $1.9 million to settle claims from a lawsuit brought against him by former customers of the company. The settlement, which also involves NBA player Victor Oladipo and NASCAR driver Landon Cassill, is part of a larger $2.4 million pool to be distributed among the claimants.

The court filing dated May 3 indicates that this settlement is pending approval from the court presiding over the civil lawsuit. The trio, including Gronkowski, Oladipo, and Cassill, had all been involved in promoting Voyager Digital prior to its bankruptcy filing in 2022. Gronkowski, in particular, had been a brand ambassador and shareholder for Voyager, as well as a holder of the company's VGX token since September 2021.

This legal action is part of a broader case against several promoters of Voyager, including Dallas Mavericks owner Mark Cuban. A group of investors initiated the lawsuit following the lender's bankruptcy, later adding Gronkowski and others to the suit. The recent settlement was described as "the first tranche of proposed Class Settlements" in the investor's court filing. The filing further states, "Plaintiffs have now settled with Voyager promoters Cassill, Gronkowski, and Oladipo for millions of dollars in relief to the class leaving Co-Defendants Mark Cuban and the Dallas Mavericks as the remaining Defendants for trial in November 2024."

The proposed settlement amounts are broken down as follows: Gronkowski will contribute $1.9 million, Oladipo $500,000, and Cassill $25,000. If the court gives its consent, the claims against these three individuals will be dismissed.

The timing of the proposed settlement coincides curiously with a comedic roast of Gronkowski's former teammate Tom Brady, who had endorsed the now-defunct exchange FTX. Although FTX was not directly mentioned, comedians made light of Brady's losses related to the collapse of FTX.

As of now, the proposed settlement awaits court approval. The outcome of this case may set a precedent for future litigation involving celebrity endorsements of financial products and the responsibilities attached to such promotional activities. The trial involving the remaining defendants, including Mark Cuban, is scheduled for November 2024.

Court Filing

Cointelegraph Article


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