The class action lawsuit against Cristiano Ronaldo for promoting the Binance crypto exchange continues as the judge denies his motion to dismiss.
Motion To Dismiss Denied
Football superstar Cristiano Ronaldo has encountered a legal hurdle as a U.S. judge recently made a significant decision, refusing to dismiss a class action lawsuit against him. On May 4, Judge Roy Altman issued a ruling that denied Ronaldo’s motion to dismiss, following the plaintiffs' request to stay proceedings until a ruling on a motion to compel arbitration.
The judge ruled,
“We deny without prejudice the Defendant’s 29 motion to dismiss.”
The Lawsuit Against Ronaldo
The class action lawsuit centers around Ronaldo's endorsement of Binance, a prominent cryptocurrency exchange. It specifically focuses on a series of non-fungible tokens (NFTs) he introduced in collaboration with Binance in November 2022, known as 'CR7,' which symbolize Ronaldo’s initials and shirt number, a common branding element in his products. The collection features digital collectibles that highlight moments from his sports career and his personal life.
Ronaldo promoted the Binance NFTs on Instagram, with endorsements that promised rewards, emphasized the potential of NFT investments, and encouraged fans to invest in the NFTs and other Binance-related products.
Plaintiffs’ Claims
The lawsuit, filed in Florida, seeks damages exceeding $1 billion, alleging that Ronaldo’s endorsements led to substantial financial losses for investors.
The plaintiffs' allegations are substantial, claiming that Ronaldo’s endorsements influenced their decision to invest in Binance and related NFTs, resulting in significant financial losses. They argue that Ronaldo’s partnership with Binance triggered a massive increase in Google searches for the keyword “Binance,” and his premium NFTs were sold out within a week of their launch.
Binance is currently embroiled in legal battles with U.S. regulators over whether the NFTs and tokens on its platform constitute investment contracts under U.S. securities law.
Judge’s Ruling and Arbitration
In addition to denying Ronaldo’s motion to dismiss the case, Judge Altman granted the plaintiffs’ request for the case to be stayed for arbitration, saying,
“Accordingly, we direct the Clerk of Court to close and stay this case until we have adjudicated the pending motions to compel arbitration in the related action.”
This private form of dispute resolution involves a neutral third party that has been agreed upon by both parties to adjudicate the case rather than go to court.
The outcome of a possible arbitration process will be crucial in determining the final resolution of this lawsuit, which could have substantial implications for both Ronaldo as well as Binance, which is facing significant legal troubles of its own.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
