Tom Brady, other celebrities ask court to dismiss lawsuit over promoting FTX

Celebrities implicated successful a class-action suit implicit promoting crypto speech FTX person asked the tribunal to disregard the case, according to motions filed connected April 14.

The celebrities see comedian histrion and manager 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 successful assorted advertisements related to FTX — including a Super Bowl advertisement — and promoted the speech connected societal media during 2021 and 2022.

Motion to dismiss

The galore motions to disregard submitted connected behalf of immoderate of the celebrities reason that the lawsuit holds nary merit arsenic the investors person failed to authorities a valid assertion against the celebrities.

The filing states that the plaintiffs bash not differentiate successful the lawsuit betwixt the celebrities progressive successful advertisements and “FTX insiders” similar Sam Trabucco and Sam Bankman-Fried (SBF). It further argues that the investors person not clarified however the celebrities caused their losses nor submitted immoderate impervious that the celebrities’ promotions influenced their investments.

According to the filing:

“There is nary plausible transportation betwixt advertising, postings, oregon sponsorships related to FTX mostly and Plaintiffs’ circumstantial alleged mislaid deposits.”

Lawyers said successful the filing that the celebrities were doing a occupation and specified a suit would marque each histrion liable for selling securities by appearing successful a brokerage advertisement. They besides argued that celebrities did not beforehand investing successful yield-bearing accounts (YBAs) — which is the crux of the investors’ lawsuit arsenic they are claiming losses connected specified accounts.

“Plaintiffs simply were not injured by Movants (the celebrities). As their ailment lays bare, FTX — not Movants — allegedly enticed Plaintiffs into opening YBAs.”

Garrison v. Bankman-Fried et al

The class enactment lawsuit was filed successful the Southern District Court of Florida successful November 2022 by Edwin Garrison connected behalf of himself and each investors “similarly situated.”

The suit alleges that FTX was a fraudulent level from the commencement that was designed to prey connected “unsophisticated investors” crossed America that usage their phones to enactment successful investing.

It further states that the celebrities promoted a fraudulent level and did not disclose the magnitude of compensation they received, which is against securities law.

The station Tom Brady, different celebrities inquire tribunal to disregard suit implicit promoting FTX appeared archetypal connected CryptoSlate.