Larry David’s FTX Super Bowl Ad: Legal Fallout and Celebrity Endorsements
In 2022, comedian Larry David broke his long-standing commercial silence by featuring in a Super Bowl ad for the cryptocurrency platform FTX. Portraying his trademark skeptical persona from "Curb Your Enthusiasm," David humorously dismissed inventions, ultimately being pitched FTX as a safe entry point into cryptocurrency. The ad concluded with a cautionary tagline: “Don’t be like Larry. Don’t miss out.” However, shortly after airing, FTX famously collapsed, leading to investor lawsuits against David and other celebrity endorsers, including Tom Brady and Naomi Osaka.
A federal judge recently dismissed most claims against David and his fellow stars, concluding they lacked intent to deceive shoppers or knowledge of FTX’s fraudulent operations. Although Judge K. Michael Moore acknowledged the endorsers’ negligence, he ruled that they could not be held liable for investor losses, emphasizing the absence of detailed claims about deceptive practices.
The lawsuits, stemming from what is considered one of the most significant financial frauds in U.S. history, alleged that FTX operated as a Ponzi scheme. Plaintiffs argued that celebrity endorsements misled consumers into risky financial decisions. While most claims were dismissed, some violations of state securities laws will proceed.
High-profile endorsements of crypto have resulted in increased scrutiny and legal challenges. Celebrities like Kevin O’Leary, who received $18 million for promoting FTX, and Kim Kardashian, fined by the SEC for failing to disclose payments for a different crypto endorsement, highlight the risks associated with celebrity-backed investments.
As the court allows investors a chance to strengthen their claims against the endorsers, the broader debate about the responsibilities of celebrities in promoting financial products continues.
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