NFL quarterback Trevor Lawrence, along with YouTube influencers Kevin Paffrath and Tom Nash, have reportedly settled allegations in a lawsuit accusing them of not properly disclosing compensation in their promotions for the now-defunct cryptocurrency exchange, FTX.
A Bloomberg report from September 16th states that these three figures agreed to a proposed settlement, although the terms have not been made public. Lawrence, Paffrath, and Nash are the first among numerous celebrities involved in the lawsuit to reach a settlement.
Other celebrities involved in the lawsuit include the likes of Tom Brady, Gisele Bündchen, Kevin O’Leary, Shaquille O’Neal, Naomi Osaka and David Ortiz. Aside from Paffrath and Nash, six other YouTubers (Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, and Erika Kullberg) are also accused of non-disclosure of compensation. Creators Agency, the talent management company responsible for promoting FTX, is also named in the lawsuit.
FTX is considering ways to recover the millions of dollars paid to celebrity athletes and sports teams that promoted them before their insolvency in November 2022. Trevor Lawrence, Shaquille O’ Neal, and Kevin O’Leary are among those who reportedly received substantial fees for promoting the platform.
The lawsuit, which was first filed on March 15, alleges that the influencers failed to adequately disclose that their promotions for FTX were actually paid content, and not based on genuine interest. The suit claims that despite receiving significant payments to promote FTX and encourage their followers to invest, there were no proper disclosures of the nature and extent of their sponsorships, endorsement deals or compensations.