Jacksonville Jaguars Quarterback Trevor Lawrence and YouTube Influencers Settle Lawsuit Over FTX Endorsements

News | September 18, 2023 By:

On September 16, 2023, Bloomberg reported that Jacksonville Jaguars quarterback Trevor Lawrence and YouTube influencers Kevin Paffrath and Tom Nash reached a settlement in a lawsuit over their alleged failure to disclose appropriate compensation in their endorsements for FTX, a collapsed cryptocurrency company. The lawsuit named multiple celebrities and influencers and accused them of not disclosing their compensation in FTX-related endorsements. However, the details of the settlement terms have not been disclosed.

In 2021, Lawrence signed a sponsorship deal with FTX subsidiary Blockfolio before becoming the No. 1 pick for the 2021 NFL draft by the Jaguars. The filing with the U.S. Bankruptcy Court revealed that Lawrence received more than $205,000 from FTX.

The lawsuit also included Paffrath and Nash as defendants and claimed that they were paid by FTX to promote the brand without disclosing the nature and extent of their sponsorships or compensation. The complaint alleged that influencers played a significant role in the collapse of FTX.

Paffrath, who has a substantial YouTube following of over 1.8 million subscribers, dismissed the claim that influencers were responsible for FTX’s collapse, instead blaming former FTX CEO Sam Bankman-Fried and his associates. Nash initially did not respond to the lawsuit, but he was served with the complaint by the Moskowitz Law Firm through various channels, including X (formerly known as Twitter).

Lawyers involved in the case stated that they were engaged in ongoing confidential settlement discussions with other defendants. It is likely that additional settlements related to FTX will be reached in the future.

The list of defendants named in the lawsuits related to FTX endorsements includes Shaquille O’Neal, a 15-time NBA All-Star who allegedly received around $750,000 from FTX, and Stephen Curry, a four-time NBA champion. Other notable defendants include Kevin O’Leary from “Shark Tank,” Tom Brady, Larry David, and Naomi Osaka, a tennis player.

 

Source: Bloomberg