NFL’s Brady, Under Legal Siege for FTX, Turns to Latham for Help

Tom Brady has turned to Latham & Watkins to fight lawsuits tied to his promotion of FTX, with litigants claiming he’s liable for helping to funnel investors to an alleged Ponzi scheme.

Andrew Clubok, the Washington-based leader of the securities litigation and professional liability practice, is representing Brady, the firm confirmed. His crypto-related clients have included U.S. exchange Coinbase and Andreessen Horowitz co-founder Marc Andreessen.

Latham will represent Brady and “several” named defendants in federal and state actions filed in Florida, according to an email Clubok sent Dec. 5 to plaintiffs’ counsel that was shared with Bloomberg Law by Adam Moskowitz, one of the lead plaintiffs’ attorneys.

The firm’s representation of the NFL star quarterback follows the collapse of FTX, a crypto exchange once privately valued at $32 billion, which filed for bankruptcy last month. Former FTX leader Sam Bankman-Fried was arrested in the Bahamas Monday and is facing criminal charges.

The lawsuits target Bankman-Fried and the FTX ambassadors, including Brady, his ex-wife, model Gisele Bundchen, and comedian Larry David. They are among several legal actions filed against individuals and outside parties since FTX’s initiation of bankruptcy proceedings, which generally shield debtors from lawsuits.

Brady became an FTX ambassador in 2021 and starred in a commercial where he said he was “getting into crypto with FTX” and asked others to join him.

Latham declined to comment on other defendants it is representing beyond Brady. Latham is due to file notices of appearance in the state and federal actions in the coming weeks.

The litigation adds to Latham’s plate of work for Brady, who has previously retained the firm for legal matters tied to his TB12 trademark and the formation of his film production company.

Other Latham lawyers working for Brady on the FTX-related lawsuits include litigation department head Michele Johnson and sports and media industry group leader Marvin Putnam. Litigation partners Susan Engel and Jessica Stebbins Bina are also working on the matter, according to the firm.

Roberto Martinez, a former U.S. attorney for the Southern District of Florida who is now a partner at Florida boutique Colson Hicks Eidson, is working with Latham as its state counsel.

FTX Lawsuits

Days after the bankruptcy, the Moskowitz Law Firm, a South Florida litigation boutique, and Boies Schiller Flexner filed actions in Miami federal and state court against Bankman-Fried and celebrity promoters of the exchange.

A federal suit on behalf of a proposed class of FTX customers alleges that FTX’s yield-bearing accounts, which pay interest on crypto holdings, were unregistered securities in violation of Florida and U.S. laws and that celebrities who hawked them should therefore be on the hook for investor damages. The action, filed on Nov. 15, claims damages are over $11 billion.

A separate state action in Florida, backed by lawyers including Boies Schiller co-founder David Boies and partner Stephen Zack, seeks a declaratory judgment on whether FTX yield-bearing accounts are unregistered securities and if, by extension, celebrity promoters violated consumer laws by touting them. That action names Brady, TV personality Kevin O’Leary and former Boston Red Sox star David Ortiz — all Florida residents — as defendants.

Other Big Law shops working on matters tied to FTX’s collapse include Sullivan & Cromwell, which is serving as a lead adviser for FTX in bankruptcy proceedings. Caroline Ellison, the former CEO of Alameda Research, the sister trading company of FTX, has retained WilmerHale in a federal probe relating to the exchange’s collapse, Bloomberg News reported Dec. 10.