Recently, prominent figures in American sports took a significant step in a lawsuit against Voyager Digital. Retired NFL star Rob “Gronk” Gronkowski, NBA player Victor Oladipo, and NASCAR driver Landon Cassill collectively reached a $2.42 million settlement to resolve allegations of their roles in promoting Voyager Digital.
What Are the Details of the Payments?
According to the class action settlement filed on May 3, Gronkowski will pay the largest portion, amounting to $1.9 million. Oladipo will pay $500,000, and Cassill will contribute $25,000. All three sports stars accepted the settlement without admitting or denying the accusations.
This settlement proposal covers all US individuals who registered for a Voyager Earnings Program Account or purchased VGX tokens before October 2019. In addition to approving the $2.4 million settlement, the plaintiffs plan to request approximately $792,000 in attorney fees.
In 2021, Gronkowski launched an NFT collection and became a partner, “brand ambassador”, shareholder, and owner of VGX tokens at Voyager. The legal representative for the investors, Adam Moskowitz, stated that the athletes’ intentions to settle stemmed from a genuine desire to help their fans. Moskowitz noted, “Despite losing money with Voyager, Gronk developed sincere empathy for all his fans.”
Background of the Lawsuit
A group of investors filed a class action lawsuit against Dallas Mavericks owner Mark Cuban in 2022, and later, in 2023, included Rob Gronkowski and other Voyager endorsers in the lawsuit process. The lawsuit primarily focused on whether Voyager products were unregistered securities and whether the endorsers misled investors.
Throughout the lawsuit, several settlements were reached through mediation between the parties. These agreements aimed to resolve uncertainties in the industry and facilitate reconciliation among the parties. Particularly, efforts were made to correct market turmoil following Voyager Digital’s bankruptcy filing, events like the collapse of Terra/Luna in May and the default on loans given to the Three Arrows Capital hedge fund caused significant upheaval in the sector.
However, in April, Voyager Digital took a significant step by providing $484 million to compensate its creditors. This funding was obtained through settlements with FTX, Three Arrows Capital, and Directors and Officers (D&O) insurance claims.
