Legal settlement involving three star athletes received preliminary approval from a judge
A legal settlement involving three star athletes has received preliminary approval from a Florida judge. The settlement allows them to pay more than $2.4 million in financial relief following allegations that they promoted cryptocurrency company Voyager Digital.
In a lawsuit filed June 10 in the U.S. District Court for the Southern District of Florida, Judge Roy Altman granted preliminary approval to a class-action settlement involving NFL star Robert Gronkowski, the NBA Victor Oladipo and NASCAR driver Landon Cassel. Lawyers for the three sports figures announced in May that they had agreed to collectively pay about $2.4 million to settle the case, with Gronkowski alone paying $1.9 million.
The class action lawsuit, originally filed against former Dallas Mavericks owner Mark Cuban in 2022, alleged the billionaire misrepresented Voyager’s services, causing inexperienced investors to lose money when the company filed its balance sheet. If the court gains final approval, the proposed settlement would resolve issues for Gronkowski, Oladipo and Cassel, but not for Cuba or the Mavericks.
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The civil suit is not related to other legal actions that Voyager’s debtors have been involved in since 2022. The company has been in bankruptcy court and has been handling claims regarding funds from Three Arrows Capital and the defunct FTX cryptocurrency exchange.
In April, a judge approved a motion under which FTX would waive all rights to approximately $450 million in funds that would be used to compensate Voyager’s creditors. In 2023, a federal judge approved an order requiring Voyager and its subsidiaries to pay more than $1.6 billion in cash relief to the U.S. Federal Trade Commission.
The U.S. Commodity Futures Trading Commission and the Federal Trade Commission have filed parallel lawsuits against former Voyager CEO Steven Ehrlich for fraudulent misrepresentations related to the company’s services. Matters were ongoing at the time of publication.
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