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Tom Brady, Shohei Ohtani, Steph Curry, Naomi Osaka, David Ortiz and other famous folks got most of the claims made against them in the FTX case dismissed by a federal judge this week. Last year, an $11 billion lawsuit was filed against them over endorsement deals they had with the failed crypto exchange FTX.
All of the celebrities named in the lawsuit, including Gisele Bundchen, David Ortiz, Udonis Haslem, Kevin O’Leary, and Larry David, had previously denied any culpability in the fraud. Shaquille O’Neal and Trevor Lawrence had been named in the lawsuit, but have settled with a group of FTX investors. Sam Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison for his role in the scheme.
According to CNBC, U.S. District Judge K. Michael Moore ruled in a 49-page decision that 12 of the 14 claims made by the plaintiffs were to be dismissed. His reasoning was that despite the celebrities’ participation in the promotion of FTX (he called them “uninformed, negligent, or even reckless”), the plaintiffs failed to plausibly show that the celebrities’ knowledge of FTX’s fraud.
Judge Moore also states that “defendants cannot be found liable for civil conspiracy for merely receiving payments and other monetary benefits in exchange for their promotional content.” The plaintiffs may still amend their complaint and refile it, but, according to CNBC, “but will need to present stronger evidence directly linking the stars to FTX’s alleged wrongdoing.”
The only two claims he did allow to continue forward allege there were violations of Florida and Oklahoma laws which prohibit the sale of unregistered securities.
Tom Brady and Gisele Bundchen reportedly lost $48 million in the FTX cryptocurrency scandal. Major League Baseball, the Golden State Warriors, Formula 1 Racing, and multiple “YouTubers” are also listed as defendants in the $11 billion lawsuit.