Class Action Lawsuits Over FTX and Voyager Celebrity Endorsements Lead to Legal Subpoenas

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Law firm Sullivan & Cromwell has challenged two separate class action subpoenas issued by Moskowitz and Boies Schiller, arguing that they demand privileged information from third parties with no involvement in the cases.

The first subpoena involves a proposed class action against FTX over allegations that its yield-bearing accounts are unregistered securities. The second subpoena seeks information from Sullivan & Cromwell about its legal representation of FTX and the role of Mark Cuban and other “brand ambassadors” in endorsing cryptocurrencies.

In both cases, Sullivan & Cromwell argued that it has no relevant documents to produce because it never represented Voyager or the brand ambassadors concerning their crypto endorsements. Furthermore, the law firm argued that it holds no information on whether FTX’s accounts constitute securities. To force Sullivan & Cromwell to comb through its records on this issue would be “unduly burdensome and harassing,” the firm said in its motions to quash the subpoenas.

  

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The attorneys from Moskowitz and Boies Schiller countered with an email exchange in which Moskowitz justified the Voyager subpoena by citing “companies that Sullivan & Cromwell represented, where Mark Cuban and Voyager were directly involved (like in Polygon).” This appears to be a reference to blockchain company Polygon Labs, whose general counsel is a former Sullivan & Cromwell associate.

The firm has also argued that the plaintiffs’ lawyers are trying to have their cake and eat it too by seeking discovery on an ostensibly legal issue while simultaneously asking the court to decide the matter as a matter of law. Sullivan & Cromwell suspects that other law firms may have been issued subpoenas in connection with the FTX and Voyager cases, but this has not been confirmed.

Overall, both sides are attempting to protect their interests while also using the motions to quash to establish facts in the case. Only time will tell whether Sullivan & Cromwell’s challenge is successful or if Moskowitz and Boies Schiller get the discovery they’re after. Both sides may eventually settle, allowing the next steps in the case to move forward without further legal wrangling. Whatever happens, this dispute is likely to remain of interest for attorneys keeping tabs on privilege issues and class action litigation strategies.

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FTX, Voyager celeb endorsement class actions spark fight over law firm subpoenas