Celebrities implicated in a class-action lawsuit over promoting crypto exchange FTX have asked the court to dismiss the case, according to motions filed on April 14.
The celebrities include comedian actor and director Larry David, Tom Brady, Gisele Bundchen, Stephen Curry, Udonis Haslem, Trevor Lawrence, Kevin O’Leary, Shohei Ohtani, David Ortiz, Naomi Osaka — and the Golden State Warriors NBA team.
The celebrities appeared in various advertisements related to FTX — including a Super Bowl ad — and promoted the exchange on social media during 2021 and 2022.
Motion to dismiss
The numerous motions to dismiss submitted on behalf of some of the celebrities argue that the case holds no merit as the investors have failed to state a valid claim against the celebrities.
The filing states that the plaintiffs do not differentiate in the case between the celebrities involved in advertisements and “FTX insiders” like Sam Trabucco and Sam Bankman-Fried (SBF). It further argues that the investors have not clarified how the celebrities caused their losses nor submitted any proof that the celebrities’ promotions influenced their investments.
According to the filing:
“There is no plausible connection between advertising, postings, or sponsorships related to FTX generally and Plaintiffs’ specific alleged lost deposits.”
Lawyers said in the filing that the celebrities were doing a job and such a lawsuit would make every actor liable for selling securities by appearing in a brokerage advertisement. They also argued that celebrities did not promote investing in yield-bearing accounts (YBAs) — which is the crux of the investors’ case as they are claiming losses on such accounts.
“Plaintiffs simply were not injured by Movants (the celebrities). As their complaint lays bare, FTX — not Movants — allegedly enticed Plaintiffs into opening YBAs.”
Garrison v. Bankman-Fried et al
The class action lawsuit was filed in the Southern District Court of Florida in November 2022 by Edwin Garrison on behalf of himself and all investors “similarly situated.”
The suit alleges that FTX was a fraudulent platform from the start that was designed to prey on “unsophisticated investors” across America that use their phones to participate in investing.
It further states that the celebrities promoted a fraudulent platform and did not disclose the amount of compensation they received, which is against securities law.
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Source: https://cryptoslate.com/tom-brady-other-celebrities-ask-court-to-dismiss-lawsuit-over-promoting-ftx/