Steph Curry, Tom Brady and other celebrities excluded from most FTX investor claims, judge rules

A Florida federal judge has dismissed most of the claims in opposition to high-profile celebrities and YouTubers who promoted the now-defunct cryptocurrency alternate FTX, together with stars like Tom Brady, Gisele Bündchen, Kevin O’Leary, and Stephen Curry.

The ruling narrows the scope of a sprawling multidistrict litigation accusing them of utilizing their fame to market a fraudulent platform.

In an order filed Wednesday, U.S. District Judge Ok. Michael Moore dominated that the plaintiffs, a bunch of FTX traders, did not reveal that the celebrities had adequate information of FTX and CEO Sam Bankman-Fried’s misconduct to be held answerable for selling the alternate.

The lawsuit stemmed from FTX’s catastrophic collapse in November 2022, which worn out billions of {dollars} in buyer funds and triggered investigations worldwide. The plaintiffs accused the celebs of being paid hundreds of thousands of {dollars} to endorse FTX with out disclosing their monetary incentives, a violation of federal and state promoting legal guidelines.

The judge dismissed almost the entire claims in opposition to the “Superstar Defendants,” which embrace Shohei Ohtani, Larry David, the Golden State Warriors, Udonis Haslem, David Ortiz and Naomi Osaka.

The court docket additionally cleared the “YouTuber Defendants,” together with influencers who allegedly marketed FTX by social media, of most claims.

Moore wrote that the plaintiffs “fail to adequately plead causation” and “fail to plausibly allege Defendants’ information of FTX’s fraud.” He added that whereas the celebrities might have been “uninformed, negligent, and even reckless,” the plaintiffs didn’t present they “had any information of FTX’s fraud” or “had the requisite intent to deceive or defraud traders.”

The choice considerably reduces the celebrities’ authorized publicity, although two claims in opposition to them stay energetic.

Plaintiffs should still amend their grievance and attempt once more, the judge wrote, however might want to current stronger proof instantly linking the celebs to FTX’s alleged wrongdoing.

The ruling comes after a protracted authorized battle by which plaintiffs alleged that the celebrities and influencers have been answerable for selling unregistered securities and partaking in misleading practices.

Brady and his ex-wife, Bündchen, have been among the many most distinguished faces of FTX, showing in a high-profile industrial for the alternate in 2022. Curry and the Golden State Warriors additionally had an endorsement take care of FTX, whereas David starred in a extensively seen Tremendous Bowl industrial for the platform.

Late final month, NBA star Shaquille O’Neal settled with a bunch of FTX traders who accused him of enabling the failed alternate’s fraud as a star promoter.

Whereas plaintiffs had sought $21 billion in whole damages from O’Neal and other promoters, the phrases of his settlement weren’t disclosed.