Garrison Et Al V. Paffrath Et Al
A group of individuals, including Edwin Garrison, Gregg Podalsky, Skyler Lindeen, Alexander Chernyavsky, Sunil Kavuri, Gary Gallant, and David Nicol, have filed a class action lawsuit in the United States District Court, Florida Southern. The defendants in the lawsuit are YouTube and social media financial influencers and promoters, including Kevin Paffrath, Graham Stephan, Andrei Jikh, Jaspreet Singh, Brian Jung, Jeremy Lefebvre, Tom Nash, Ben Armstrong, Erika Kullberg, and Creators Agency. The plaintiffs allege that the defendants promoted and assisted in the sale of unregistered securities by FTX Trading LTD and FTX US, resulting in the largest financial fraud in US history. The plaintiffs claim that the defendants did not disclose the nature and scope of their sponsorships and/or endorsement deals, payments, and compensation, nor conduct adequate due diligence. The lawsuit involves a group of plaintiffs who purchased unregistered securities in the form of YBAs on FTX's trading platform, which subsequently imploded and filed for Chapter 11 bankruptcy. The plaintiffs allege that FTX engaged in a fraudulent scheme that resulted in billions of dollars in damages to investors, including themselves. The defendants in the lawsuit are digital creators who provided investor information and advice on YouTube, including endorsements of FTX, without disclosing that they were paid by FTX in violation of SEC, FTC, and other regulations. The lawsuit seeks damages for their losses and holds the defendants liable for their role in promoting FTX. The plaintiffs demand a jury trial.
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