NFL, YouTube stars reach settlement in FTX class action lawsuit

NFL quarterback Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash have reportedly filed a lawsuit reached a settlement alleging they failed to fully disclose compensation during a promotional campaign for now-defunct cryptocurrency exchange FTX.

According to a report by Bloomberg on September 16, the three celebrities have reached a proposed settlement; however, the terms of the agreement were not disclosed.

Lawrence, Pavrat and Nash are reportedly the first high-profile celebrities and influencers to reach settlements in the class-action lawsuit.

Other notable defendants in the class action lawsuit include Tom Brady, Gisele Bundchen, Kevin O’Leary, Shaquille O’Neal, Naomi Osaka and David Ortiz

Meanwhile, Pavrat and Nash are among eight YouTubers accused of failing to properly disclose their compensation. The other six include Graham Stephan, Andre Jihe, Jaspreet Singh, Brian Jung, Jeremy Lefebvre and Erika Kuhlberg.

Creators Agency, the talent management company behind the FTX promotion, is also named in the lawsuit.

On September 11, a court filing revealed that FTX is considering how to recoup millions of dollars it paid to famous athletes and sports teams that promoted the development of the cryptocurrency exchange before its bankruptcy in November 2022.

According to the documents, Trevor Lawrence received $205,555, Shaquille O’Neal received approximately $750,000, and Kevin O’Leary topped the list with $2,348,338.

The class action lawsuit was originally filed on March 15, alleging that the influencers failed to fully disclose the true nature of their FTX promotions, which were actually paid content rather than content based on genuine interest:

“Although FTX generously paid Defendants to promote its brand and encourage its followers to invest, Defendants failed to disclose the nature and extent of its sponsorship and/or endorsement arrangements, payments and compensation, and failed to conduct adequate due diligence, if any. )”.

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