In a recent development, three prominent American sports personalities have agreed to collectively pay $2.42 million to settle accusations of promoting the now-bankrupt cryptocurrency exchange Voyager Digital.
Retired NFL star Rob “Gronk” Gronkowski, NBA player Victor Oladipo, and NASCAR driver Landon Cassill have reached settlements without admitting to or denying the allegations.
TLDR
Rob Gronkowski, Victor Oladipo, and Landon Cassill agree to pay $2.42 million to settle allegations of promoting failed cryptocurrency exchange Voyager Digital.
Gronkowski will pay the largest share of $1.9 million, while Oladipo will pay $500,000 and Cassill will pay $25,000.
The proposed settlement includes all U.S. individuals who enrolled in a Voyager Earn Program Account or purchased VGX tokens from October 2019 to the preliminary approval date.
Plaintiffs plan to ask for an award of attorney fees of roughly $792,000 in addition to approving the $2.4 million settlement.
The main defendant named in the class action lawsuit is Dallas Mavericks minority owner Mark Cuban, with Gronkowski and other Voyager promoters added in 2023.
Of the three athletes, Gronkowski will be paying the lion’s share of the settlement, amounting to $1.9 million. The former New England Patriots tight end had become a Voyager partner, brand ambassador, shareholder, and VGX tokenholder in September 2021.
His sincere empathy for his fans, despite losing money with Voyager himself, has been cited as a key reason for his willingness to settle.
Oladipo and Cassill Also Contribute
NBA All-Star Victor Oladipo has agreed to pay $500,000, while NASCAR driver Landon Cassill will contribute $25,000 to the settlement pool. The total settlement of $2.42 million will provide relief to U.S. individuals who enrolled in a Voyager Earn Program Account or purchased VGX tokens from October 2019 to the preliminary approval date.
Attorney Fees and Settlement Scope
In addition to the $2.4 million settlement, plaintiffs plan to request an award of attorney fees amounting to approximately $792,000. The settlements were negotiated through mediation, aiming to resolve the issues of whether Voyager products were unregistered securities and if the promoters solicited investors.
Mark Cuban Remains a Defendant
While Gronkowski, Oladipo, and Cassill have settled, the main defendant in the class action lawsuit remains Dallas Mavericks minority owner Mark Cuban. The billionaire was scheduled to be deposed in February as part of his defense in the lawsuit. The trial against Cuban and the Dallas Mavericks is set for November 2024.
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