US Professional Athletes to Pay $2.4M in Settlement amid Voyager Lawsuit

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As an analyst with a background in finance and experience in following the crypto market, I believe that the reported settlement by Rob Gronkowski, Victor Oladipo, and Landon Cassill in the Voyager Digital lawsuit is a significant development in the ongoing case. The three athletes, who were identified as promoters of the now-bankrupt crypto exchange, have agreed to pay a collective settlement of up to $2.42 million.

As an analyst, I’ve come across the news that three notable American athletes – Rob “Gronk” Gronkowski, a retired NFL star, NBA’s Victor Oladipo, and NASCAR driver Landon Cassill – have reportedly reached a settlement worth up to $2.42 million in the ongoing Voyager Digital lawsuit. These athletes played significant roles in promoting the now-bankrupt crypto exchange prior to its collapse.

Court records indicate that the retired NFL player, Gronkowski, will receive the largest portion of the settlement, amounting to $1.9 million. In autumn 2021, he joined forces with Voyager as their brand ambassador. As a result of this collaboration, Gronkowski became both an investor in the company and a holder of VGX tokens.

Despite suffering significant financial losses at the hands of Voyager, Gronkowski’s heartfelt compassion towards his supporters and admirers is believed to be the driving force behind his decision to reach a settlement.

NBA player Victor Oladipo is adding $500,000 to the total amount paid in the settlement, while Cassill will contribute the least with $25,000.

Approximately $2.42 million in total compensation is anticipated to alleviate the financial burdens of American individuals who joined the Voyager Earn Program or bought VGX tokens between October 2019 and the preliminary approval date. The three defendants have consented to the settlement’s terms, but they haven’t explicitly acknowledged the plaintiffs’ allegations.

Besides the prearranged sum, plaintiffs face an extra charge of approximately $792,000 to compensate their legal team.

Main Defendant Remains in Voyager Lawsuit

As an analyst, I would rephrase it as follows: In the ongoing class action lawsuit, Mark Cuban, Dallas Mavericks minority owner, remains the primary defendant despite Gronkowski and Cassill settling out of court in 2023. Originally, investors filed against Cuban alone back in 2022. However, the case took a new direction when the plaintiffs added Gronkowski and other Voyager promoters to the lawsuit. The trial against Cuban and the Dallas Mavericks is scheduled for November 2024.

As an analyst, I would put it this way: The settlements reached in this case were facilitated through mediation with a clear objective. Initially, this process aimed to ascertain whether Voyager’s offerings fell under the category of unregistered securities. Furthermore, it was designed to determine if the promoters had solicited investors during their operations.

Voyager Digital declared bankruptcy in July 2022 as a result of Terra’s collapse, which caused widespread turmoil within the industry. However, before that, in April, the platform made some strides towards reimbursing its creditors. It successfully secured $474 million through arrangements with FTX, Three Arrows Capital, and insurance claims for Directors and Officers (D&O).

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2024-05-08 14:24