Gronkowski, Oladipo, Cassill to Pay $2.4M to Settle Voyager Crypto Promotion Lawsuit

News | May 22, 2024 By:

On Friday, May 3, 2024, Retired NFL star Rob Gronkowski, NBA player Victor Oladipo and NASCAR driver Landon Cassill agreed to collectively pay $2.4 million to settle allegations they helped promote the failed cryptocurrency exchange Voyager Digital Holdings Inc.

According to a motion filed by a proposed class of Voyager investors, Gronkowski will pay the largest share at $1.9 million. Victor Oladipo will pay $500,000 and Landon Cassill will pay $25,000. All three athletes settled without admitting fault.

The proposed class includes individuals in the US who enrolled in a Voyager Earn Program Account or purchased VGX tokens between October 23, 2019, and the settlement date. As part of the settlement, the investors are asking the court to certify the class and appoint co-lead counsel to represent them.

The motion argues class certification is appropriate as the class meets standards like typicality and adequacy. It also states the settlement is reasonable given litigation risks like pending dismissal motions. Class counsel intends to request attorney fees of up to one-third of the settlement amount, or approximately $792,000.

In a statement to Law360, Adam Moskowitz, representing the investors, said the athletes “really wanted to help their fans” and noted Gronkowski “continues to be such a trusted and respected spokesperson.”

While Gronkowski, Oladipo, and Cassill were named as defendants, the suit primarily focuses on billionaire Mark Cuban and the Dallas Mavericks, who are the only remaining defendants. Investors allege the parties misled them about Voyager’s profits and tricked them into buying unregistered securities.

Voyager filed for bankruptcy in July 2022 after a run on the exchange and default of a $650 million loan to failed hedge fund Three Arrows Capital. The company had sought buyers, but potential deals fell through.

Please contact BlockTribune for access to a copy of this filing.