FTX’s former attorneys, Fenwick and West, and celebrity marketers associated with the defunct exchange have sought to dismiss class-action suits filed against them.
The FTX Lawsuit Action Against Fenwick and West
Investors in the exchange allege that FTX engaged in fraudulent activities and that its former law firm, Fenwick & West, played a role in aiding and abetting these alleged frauds.
The complaint against Fenwick & West alleges that the law firm went beyond its traditional role in providing legal services and had knowledge of activities within FTX that extended beyond the scope of normal legal representation. However, Fenwick & West vehemently denies these allegations.
Fenwick & West’s Response
In response to the class action suit, Fenwick & West has filed a motion to dismiss the claims against them. The law firm maintains that it acted solely within the boundaries of its representation for FTX and had no prior knowledge of any alleged fraudulent activities within the exchange.
The crux of Fenwick & West’s argument lies in the assertion that they acted in good faith and provided legal counsel based on the information available to them at the time. The firm maintains that it had no reason to suspect or believe that FTX was involved in any fraudulent activities.
Additionally, the law firm argued that it was not the personal lawyer of Bankman-Fried or any other FTX insiders involved in the alleged fraud. Fenwick also claims that it was not the sole legal representative of FTX, and highlighted that the exchange was represented by multiple prominent law firms.
Aside from Fenwick & West’s response, there is also another class action lawsuit that involves a group of high-profile celebrities who once served as marketing figures for FTX. These celebrities, including Tom Brady, Gisele Bündchen, Stephen Curry, Larry David, Shaquille O’Neal, David Ortiz, and Naomi Osaka, have been named as defendants in the lawsuit.
The investors allege that these celebrities collaborated in FTX’s alleged fraud. However, much like Fenwick & West, the celebrities have filed a separate motion to dismiss the litigation against them.
In their motion, these celebrities argue that the plaintiffs have failed to present any concrete evidence supporting their contentions. The motion asserts that the plaintiffs have not put forth a single fact that substantiates the claim that these high-profile individuals participated in the alleged “secret FTX scheme,” which is said to have been orchestrated by a select few FTX insiders.
Meanwhile, three FTX marketers took a different route last week and decided to settle the cases against them. Among them were Jacksonville Jaguars quarterback Trevor Lawrence, as well as YouTube influencers Kevin Paffrath and Tom Nash.