American Sports Stars Reach $2.42 Million Settlement in Voyager Promotion Case
By Jimmy Aki
Updated: May 8, 2024, 15:04 EDT
| Reading Time: 2 minutes
Rob Gronkowski, Victor Oladipo, and Landon Cassill, three prominent American sports figures, have agreed to collectively pay $2.42 million to settle allegations related to the Voyager promotion case.
The settlement sheds light on the financial and legal implications of their involvement in promoting the now-defunct crypto exchange, Voyager Digital.
Plaintiffs Seek $792,000 in Attorney Fees Payment in Voyager Promotion Case
Retired NFL legend Gronkowski has agreed to pay the highest amount, $1.9 million. OKC Thunder Guard Oladipo has settled for $500,000, while NASCAR driver Cassill will pay $25,000.
In addition to the settlement, the plaintiffs are also seeking $792,000 in attorney fees.
Unlike the other defendants, Gronkowski had a deeper involvement with Voyager. 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 eventually led to the downfall of the exchange.
However, in April 2024, Voyager took steps to compensate 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 obtained a claim of around $675 million from its ongoing litigation with Three Arrows Capital. Within this amount, $20.43 million represents Voyager’s share of the initial distribution from 3AC.
Will Mark Cuban Settle?
While the sports personalities have agreed to settle the case, the main defendant has yet to come to the table.
In 2022, a class action was filed against Mark Cuban, the minority owner of the Dallas Mavericks. In 2023, the other sports influencers were added to the lawsuit.
The sports billionaire’s trial is scheduled to begin in November 2024 for his involvement in promoting Voyager’s Earn Program Accounts (EPAs), which were deemed unregistered securities.
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 an NBA ban on crypto sponsorships.
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