In the June 10 filing, U.S. District Court for the Southern District of Florida Judge Roy Altman granted preliminary approval to the class-action settlement involving NFL star Robert Gronkowski, NBA player Victor Oladipo and Nascar driver Landon Cassill. Lawyers for the three sports personalities announced in May that they had agreed to pay a lump sum of nearly $2.4 million, with $1.9 million of that amount to be paid by Gronkowski.

The class-action lawsuit filed against former Dallas Mavericks owner Mark Cuban in 2022 alleged that the billionaire misrepresented Voyager’s services, causing inexperienced investors to lose their money when the firm filed for bankruptcy. If given final approval by the court, the proposed deal would resolve matters for Gronkowski, Oladipo and Cassill, but not for Cuban or the Mavericks.

The civil lawsuit is unrelated to other legal proceedings Voyager debtors have been involved in since 2022. The firm has been in bankruptcy court, dealing with claims related to funds at Three Arrows Capital and bankrupt crypto exchange FTX.

In April, a judge approved a proposal that FTX would “give up any rights” to nearly $450 million in funds that would be used to compensate Voyager creditors. In 2023, a federal judge approved an order requiring Voyager and its subsidiaries to pay more than $1.6 billion in fines to the U.S. Federal Trade Commission.

The U.S. Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC) filed parallel lawsuits against Voyager’s former CEO, Stephen Ehrlich, for misleading statements about the company’s services. These lawsuits were ongoing at the time of publication.

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Gronkowski, Oladipo, and Cassill Resolve Legal Dispute

As per a class action settlement filed on May 3, Gronkowski will have to bear the majority of the bill, which equates to $1.9 million; Oladipo contributed 500,000, while Cassil contributed 25,000. Significantly, all three athletes agreed with the settlements without admitting or denying any of the allegations against them.

The settlement covers all U.S. persons who executed a Voyager Earn Program Account or acquired VGX tokens from October 2019 to the preliminary approval date. Moreover, plaintiffs seek to claim about $792,000 in attorney fees as a part of the settlement.

Adam Moskowitz, who was the attorney for the football players, emphasized that the athletes were a key in making the settlements happen because of the in-built empathy that Gronkowski had for his fans that they wanted to help him, and despite not getting their desired cut when he was injured and unable to play, the fact of the matter is that Gronkowski accomplished a lot with the money that he did receive. Gronk was truly empathetic towards all of his fans and lost money with Voyager as well; however, he continues to be a staple of trust as the spokesperson.

$2.4 Million Settlement Reached in Class Action Lawsuit

After a class-action lawsuit was filed against Dallas Mavericks owner Mark Cuban in 2022, this lawsuit was amended to encompass Gronkowski and other Voyager promoters in 2023. The mediation discussions centered on concerns over whether the Voyager products should be registered as securities and the promoters’ solicitation of investors.

The ultimate financial struggle for Voyager Digital was when it filed for bankruptcy in July 2022, triggered by the market turbulence associated with the Terra/Luna collapse and default on debts to the Three Arrows Capital hedge fund. But the latest developments point to some compensation to creditors, with Voyager receiving $484 million from settlements with FTX, Three Arrows Capital, and directors and officers insurance claims in April.

The resolution of the legal matter with respect to Gronkowski, Oladipo, and Cassill is a key blocking stone in the way of the Voyager Digital collapse aftermath, providing consolation for the suffered investors and other stakeholders.

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