Tuesday October 3, 2023

Tom Brady, Shaq Among Those Hit With 2nd FTX Lawsuit

  • The same firms behind last week's lawsuit take a different legal argument in latest federal complaint.
  • Lawyers are seeking class-action status for those who lost billions when FTX went bankrupt.
Tom Brady accepts Sports Person of the Year award in front of FTX sponsorship
Front Office Sports Today

NBC Could Get In On College Football Playoffs

NBC is exploring broadcasting a slice of the expanded CFP in 2026.
Listen Now
October 3, 2023 | Podcast
Copy Link
Link Copied
Link Copied

A second federal lawsuit filed on behalf of FTX investors lists the same high-profile defendants from Tom Brady to Shohei Ohtani — although the latest complaint takes a different tactic. 

The civil complaint filed in U.S. District Court for the Southern District of Florida on Monday states that defendants’ potential “caveat emptor” defense — the Latin turn for buyer beware — isn’t applicable for those who lost billions when FTX went bankrupt earlier this month, and that the paid endorsers should be held to account. 

“Although [the] defendants disclosed their partnerships with the FTX entities, they have never disclosed the nature, scope, and amount of compensation they personally received in exchange for the promotion of the deceptive FTX platform,” the lawsuit states. 

Famed attorney David Boies — whose firm was also behind the first FTX lawsuit that seeks class action status — wrote in the lawsuit that the “SEC has explained that a failure to disclose this information would be a violation of the anti-touting provisions of the federal securities laws.

“Moreover, none of these defendants performed any due diligence prior to marketing these FTX products to the public,” Boies and the other attorneys representing the lead plaintiff Sunil Kavuri wrote in the filing. Kavuri is a U.K. resident who relied on the paid endorsers’ alleged “misrepresentations and omissions” when he purchased crypto assets on FTX. 

Tampa Bay Buccaneers quarterback Tom Brady exits field after game against the Atlanta Falcons

Brady, Curry, FTX Founder Named in $11B Class-Action Suit

A consortium of investors has sued the founder of FTX.
November 16, 2022

The lawsuit’s other defendants — like the first — also include FTX founder and CEO Sam Bankman-Fried, model Gisele Bundchen, Hall of Famer David Ortiz, the Golden State Warriors, Warriors star Steph Curry, NBA legend and TNT co-host Shaquille O’Neal, the Miami Heat’s Udonis Haslem, Jaguars quarterback Trevor Lawrence, four-time Grand Slam singles champ Naomi Osaka, actor Larry David, and “Shark Tank” investor Kevin O’Leary.  

Beyond possible violations of U.S. law, the lawsuit also seeks to establish the endorsers ran afoul of Florida’s consumer protection statutes. The lawsuit seeks restitution from the endorsers, an injunction that would prevent the endorsers from “continuing those unlawful practices” along with unspecified damages. 

“This action seeks to hold defendants responsible for the many billions of dollars in damages they caused [the] plaintiff and the [proposed] class and to force defendants to make them whole,” the lawsuit states. 

Copy Link
Link Copied
Link Copied

What to Read


NHL’s Chris Foster on Amplifying Content Distribution With Automation

Learn how the NHL is using WSC Sports to increase fan engagement.

How Daktronics Helps Elite Athletic Programs Secure Top Talent

How colleges are utilizing Daktronics' displays to elevate recruiting.

WBD Pursues ‘Different’ Strategy For Sports on Max

Company to place all of its live sports on new streaming tier

Colorado's Epic Victory Sets New ESPN Prime Time Viewership Record

Coach Prime Deion Sanders delivered in prime time on ESPN.
podcast thumbnail mobile
Front Office Sports Today

NBC Could Get In On College Football Playoffs


Featured Today

An advocacy group is filing an NLRB case against the Ivy League over athlete compensation.

Advocacy Group Files Federal Labor Charge Against Ivy League

It’s the latest in a flurry of NLRB cases over amateurism.
The Colorado Buffaloes played in the most-watched game of Week 5.
October 3, 2023

Colorado Ratings Bonanza Continues Despite Two Consecutive Losses

The Buffs’ least-watched game this season was still the most-watched this week.
Football analyst and PFF investor Chris Collinsworth talks to man in front of computers
October 3, 2023

Cris Collinsworth 'Lost a Lot of Sleep' Over Pro Football Focus Leadership Issues

New book details why it’s no longer a “happy place to work.”
NBC is interested in media rights to the expanded College Football Playoff.
October 2, 2023

NBC Is Interested in Expanded College Football Playoff Media Rights

NBC is one of the networks pitching the CFP, a source confirmed.


Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Chicago Cubs
New York
Tri Star Sports and Entertainment Group, Inc.
USA - Multiple Locations
Brett Favre

Brett Favre to Give First Sworn Testimony in Mississippi Welfare Case

A deposition of Brett Favre has been scheduled for Oct. 26.
October 2, 2023

Arbitrator Rules Panini Can Continue Selling NFLPA Products

Panini can continue to sell NFLPA-licensed products.
Mississippi tackle Michael Oher poses with his family after being selected as the number 23 overall pick to the Baltimore Ravens in the 2009 NFL Draft at Radio City Music Hall in New York City.
September 29, 2023

Judge Ends Michael Oher’s Conservatorship with Tuohy Family

Oher claims the Tuohys misrepresented their legal relationship to him.
Patrick Reed
September 27, 2023

Judge Dismisses Both of Patrick Reed’s Defamation Cases

A federal judge dismissed both of Patrick Reed’s defamation cases.
NFL concussions
September 27, 2023

The NFL’s $1B Battle Over Concussion Settlement Heats Up

The NFL is seeking at least $1.2 billion from its risk carriers.
Jacksonville Jaguars quarterback Trevor Lawrence is among the FTX endorsers who have reached a settlement for their roles in promoting the crypto exchange.
September 18, 2023

Trevor Lawrence Settles Lawsuit Over FTX Crypto Endorsement

Lawrence has settled while other FTX athlete endorsers still face lawsuits.
Lane Kiffin
September 15, 2023

Ole Miss Football Player Files $40M Lawsuit Against Lane Kiffin, School

Ole Miss coach Lane Kiffin is being sued by one of his players.