Recent developments saw well-known figures in American sports finalize a legal dispute with Voyager Digital. Retired NFL player Rob “Gronk” Gronkowski, NBA athlete Victor Oladipo, and NASCAR racer Landon Cassill collectively agreed to a settlement amounting to $2.42 million to address allegations related to their involvement in promoting Voyager Digital.

Details of the Settlement Payments

As per the class action settlement filed on May 3, Gronkowski will contribute the largest sum of $1.9 million, Oladipo will pay $500,000, and Cassill will offer $25,000. These sports personalities agreed to the settlement terms without admitting or denying the accusations.

The settlement pertains to all US individuals who signed up for a Voyager Earnings Program Account or bought VGX tokens before October 2019. Apart from the $2.4 million settlement agreement, the plaintiffs are seeking approximately $792,000 in attorney fees.

In 2021, Gronkowski engaged in an NFT collection launch and took up roles as a partner, brand ambassador, shareholder, and VGX token holder at Voyager. Legal representative for the investors, Adam Moskowitz, stated that the athletes’ decision to settle was motivated by a sincere desire to assist their supporters. Moskowitz mentioned, “Despite experiencing losses with Voyager, Gronk felt genuine empathy for all his supporters.”

Lawsuit Background

A group of investors initiated a class action lawsuit against Dallas Mavericks owner Mark Cuban in 2022, which later included Rob Gronkowski and other Voyager endorsers in the legal proceedings in 2023. The lawsuit primarily centered around whether Voyager products were unregistered securities and if the endorsers misled investors.

Throughout the legal process, various settlements were reached through mediation between the parties to resolve uncertainties in the industry and foster reconciliation. Particularly, corrective measures were taken to address market turbulence following Voyager Digital’s bankruptcy filing, along with other significant events in the sector.

In April, Voyager Digital made a major move by providing $484 million to compensate its creditors. This funding was acquired through settlements with FTX, Three Arrows Capital, and Directors and Officers (D&O) insurance claims.