NFL and YouTube stars were sued by investors, alleging they had misled them through their endorsement of FTX. The investors apparently lost huge sums when the said crypt exchange firm collapsed last year.

In the latest development of the case, Trevor Lawrence, the American football quarterback for the Jacksonville Jaguars and two well-known YouTubers - Tom Nash and Kevin Paffrath - reportedly chose to settle with the complainants.

This move is said to be the very first to be solved in the string of lawsuits filed against endorsers of FTX. Many people have brought famous people to court when Sam Bankman-Fried’s company went bankrupt.

Most investors claimed that they have put their money in the crypto exchange as the impressive lineup of big endorsers from the entertainment and sports sectors made them trust the organization. Due to this, the endorsers are also in trouble when FTX has gone under.

In any case, CoinTelegraph reported that the terms of the settlement were not disclosed to the public. The high-profile personalities settled the class-action lawsuit related to the claims they failed to fully reveal their compensation when they promoted FTX.

Lawrence, Paffrath and Nash are just three of the celebrities that have been sued by groups over the mentioned complaints. Other big names that are also facing similar lawsuits include Tom Brady, Shaquille O’Neal, Kevin O’Leary, Gisele Bündchen, David Ortiz, and Naomi Osaka.

For YouTube, six other individuals are being brought to court for non-disclosure of compensation from the now-defunct FTX crypto firm. The other six people are Erika Kullberg, Graham Stephan, Jaspreet Singh, Andrei Jikh, Brian Jung, and Jeremy Lefebvre.

“Though FTX paid Defendants handsomely to push its brand and encourage their followers to invest, Defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments and compensation, nor conduct adequate (if any) due diligence,” CryptoSlate quoted the complainants as saying in their filing against the endorsers reads.

Lastly, the lawyers of the endorsers argue that the ads did not encourage investors to deposit funds money into FTX accounts. They also added that the personalities do not have a hand in the misappropriation and mismanagement within the FTX firm.

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