American sports celebrities reach a settlement of $2.42 million in the Voyager Promotion lawsuit.

American Sports Stars Reach $2.42 Million Settlement in Voyager Promotion Case


By Jimmy Aki
Updated:
May 8, 2024 15:04 EDT
|
2 min read


On May 3, three prominent American sports figures, Rob Gronkowski, Victor Oladipo, and Landon Cassill, reached an agreement to collectively pay $2.42 million to settle allegations related to the Voyager promotion case.
The settlement sheds light on the financial consequences and legal aspects of their involvement in promoting the now-defunct cryptocurrency exchange, Voyager Digital.
Plaintiffs in Voyager Promotion Case Seek $792K in Attorney Fees Payment
Retired NFL star 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.
In addition to the settlement amount, the plaintiffs are also requesting $792,000 in attorney fees.
Unlike the other defendants, Gronkowski had a more significant role in Voyager. As an NFL player, he was a partner, VGX token holder, shareholder, and ambassador for the exchange.
According to court documents, the settlement was reached through mediation to determine whether Voyager’s products were unregistered securities and if the promoters improperly solicited investors.
Voyager Digital filed for bankruptcy in July 2022 due to the severe market turmoil caused by the Terra/Luna collapse in May 2022 and the default of loans to the Three Arrows Capital (3AC) hedge fund. These events ultimately led to the downfall of the exchange.
However, in April 2024, Voyager took steps towards compensating its 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 approximately 25% of Voyager creditors’ total claims and is expected to be distributed soon.
In addition to the FTX agreement, Voyager has also secured a claim of about $675 million from its ongoing litigation with Three Arrows Capital. Within this amount, $20.43 million represents Voyager’s portion of the initial distribution from 3AC.
Will Mark Cuban Settle?
While the sports personalities have agreed to settle the case, the main defendant, Mark Cuban, has not yet come to the negotiation table.
A class action lawsuit was filed against Mark Cuban, the minority owner of the Dallas Mavericks, in 2022. In 2023, the other sports influencers were added to the lawsuit.
The trial against the sports billionaire is scheduled to commence in November 2024 for his involvement in promoting Voyager’s Earn Program Accounts (EPAs), which were classified as unregistered securities.
Moreover, 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.
The NBA’s decision to support the partnership between Voyager Digital and the Dallas Mavericks has drawn criticism, with a former SEC official suggesting a ban on crypto sponsorships by the NBA.
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