class-action lawsuit

NRL player Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash have reportedly opted to settle with investors who alleged they were misled by their FTX promotions.

NRL quarterback Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash have reportedly settled a lawsuit over alleged inadequate compensation disclosure in their promotions for the now-defunct cryptocurrency exchange FTX.

According to a Sept. 16 Bloomberg report, the three high-profile individuals have entered proposed agreements, however the settlement terms were not disclosed.

Among the high-profile celebrities and influencers entangled in the class-action lawsuit, Lawrence, Paffrath and Nash are reportedly the first to have reached a settlement.

Related: Influencer served settlement demand via NFT following $7M token presale

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

Meanwhile, Paffrath and Nash are among eight Youtubers accused of failing to disclose compensation. The other six include Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre and Erika Kullberg.

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

On September 11, a court filing revealed that FTX is mulling over how it can reclaim the millions of dollars it paid to celebrity athletes and sport teams that promoted the crypto exchange before its insolvency in November 2022. 

According to the filing, Trevor Lawrence received $205,555, Shaquille O'Neal received approximately $750,000, and Kevin O'Leary topped the list with a fee of $2,348,338.

On March 15, the class-action lawsuit was initially filed, claiming that the influencers inadequately disclosed the true nature of their FTX promotions, which was, in fact, paid content rather than content stemming from genuine interest:

“Though FTX paid Defendants handsomely to push its brand and encourage their followers to invest, Defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments and compensation, nor conduct adequate (if any) due diligence.”

Magazine: Tencent’s AI leviathan, $83M scam busted, China’s influencer ban: Asia Express