In multidistrict litigation in the U.S. District Court for the Southern District of Florida, FTX customers allege that third parties enabled the exchange’s fraud. They seek to recover about $11B in losses from promoters, law firm Fenwick & West, auditor Prager Metis, and venture backers. Fenwick & West, Prager Metis, and promoter Udonis Haslem have agreed to pay about $66M, and preliminary approval is pending.
Latest development May 22, 2026
On May 22, 2026, settlements with FTX’s former outside counsel Fenwick & West ($54M), auditor Prager Metis ($11.75M), and promoter Udonis Haslem ($420,000) were filed for approval. The deals total about $66M. The motion for preliminary approval is pending before Judge K. Michael Moore.
Why it matters
The MDL is the principal private route for FTX customers to recover losses from third parties rather than insolvent insiders. Its rulings will test how far promoters, law firms, and auditors can be held liable for a crypto exchange’s collapse.
Background
FTX collapsed in November 2022, and customers filed a wave of class actions. In June 2023, the Judicial Panel on Multidistrict Litigation (JPML) centralized the cases in the U.S. District Court for the Southern District of Florida as MDL No. 3076, before Judge K. Michael Moore. The exchange’s estate is pursuing its own clawbacks. This MDL therefore targets the third parties who allegedly enabled Sam Bankman-Fried’s fraud. The court organized it into separate tracks for insiders, promoters, lawyers, accountants, banks, and venture-capital investors.
The litigation produced a first wave of settlements. Deals resolving claims against insiders and certain defendants received preliminary approval between December 2024 and July 2025. On May 8, 2025, the court narrowed the promoter claims. It dismissed most counts against celebrity endorsers such as Tom Brady and Stephen Curry but allowed Florida and Oklahoma unregistered-securities claims to proceed.
On May 29, 2025, plaintiffs filed a 582-page amended complaint against promoters. It names Tom Brady, Gisele Bündchen, Larry David, Stephen Curry, Major League Baseball, and the Mercedes-AMG Formula 1 team, among others. It seeks to hold them jointly liable for customer losses estimated at about $11B.
A second wave of settlements followed in May 2026. FTX’s former outside counsel Fenwick & West agreed to pay $54M, auditor Prager Metis $11.75M, and promoter Udonis Haslem $420,000, about $66M combined. The settlements were filed for approval on May 22, 2026. The motion for preliminary approval is pending before the court.
Timeline 5 events
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SettlementFenwick, Prager Metis, and Haslem agree to $66M settlements
Fenwick & West agreed to pay $54M, auditor Prager Metis $11.75M, and promoter Udonis Haslem $420,000. The motion for preliminary approval is pending before Judge Moore.
FTX’s former law firm, auditor agree to pay $66 million to settle customer claims over fraud
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FilingPlaintiffs file 582-page amended complaint against promoters
The complaint names Major League Baseball, the Mercedes-AMG F1 team, Tom Brady, Gisele Bündchen, Larry David, Stephen Curry, and other promoters as alleged enablers.
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JudgmentCourt narrows claims against celebrity endorsers
Judge Moore dismissed most claims against high-profile promoters such as Tom Brady and Stephen Curry but allowed Florida and Oklahoma unregistered-securities claims to proceed.
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OrderJPML centralizes cases as MDL 3076 before Judge Moore
The Judicial Panel on Multidistrict Litigation (JPML) centralized the FTX customer suits in the Southern District of Florida. Judge K. Michael Moore organized them into tracks against insiders, promoters, lawyers, accountants, and investors.
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FilingFTX collapses and customers file class actions
The exchange’s implosion in November 2022 triggered a wave of customer class actions later centralized as MDL 3076.
Experimental AI forecast
How it is madeWill the court grant final approval of the Fenwick & West, Prager Metis, and Udonis Haslem settlements (about $66 million) in MDL 3076 by December 31, 2027?
- Court approves all three deals63%
- Still pending on December 31, 202727%
- Some approved, others fail5%
- Deals denied or terminated5%
- Resolves by
- Dec 31, 2027in 14 months
- Record confidence
- Medium
The court is likely to finally approve the roughly $66 million Fenwick & West, Prager Metis, and Haslem settlements by December 31, 2027 (63%). Federal courts rarely reject negotiated class deals, and earlier MDL 3076 settlements moved through preliminary approval. The main risk is timing, not rejection.
How it resolves. Resolves by the S.D. Fla. docket in MDL No. 3076 as of December 31, 2027. “Court approves all three deals” if a final approval order has been entered for the Fenwick & West, Prager Metis, and Haslem settlements. “Some approved, others fail” if at least one receives final approval and at least one is denied, terminated, or withdrawn. “Deals denied or terminated” if none receives final approval and all are denied, terminated, or withdrawn. “Still pending” if none of these has occurred and at least one settlement is still awaiting a ruling on preliminary or final approval.
Reasoning
Starting point. Negotiated class settlements in federal MDLs submitted for preliminary approval: Roughly 90% or more of class settlements submitted for approval eventually win final approval. The usual gap from filing to final approval is about 9 to 18 months.
Federal courts approve the large majority of class settlements that reach a preliminary approval motion, often above 90%. The usual path of preliminary approval, notice, objections, and a fairness hearing takes about 6 to 12 months after preliminary approval. This court has already given preliminary approval to earlier FTX settlements between December 2024 and July 2025, so the process is familiar. The motion filed May 22, 2026, has been pending 4.1 months, which suggests the court may be pacing or batching settlements. Batching could push a combined fairness hearing later and is the main source of the 27% pending share. The deals are modest against the claimed $11 billion in losses, which could draw objections on adequacy. Still, the defendants’ limited insurance and litigation risk give a reasonable basis for approval. Outright rejection or termination of all three deals is a long shot, and a split result is only slightly more likely.
High base rate of approval for negotiated class settlements · Preliminary approval motion pending 4.1 months with no ruling · Possible batching with other MDL settlements delays fairness hearing · Deal size small relative to claimed $11 billion losses · Court’s prior preliminary approvals of earlier FTX settlements
Generated automatically by Claude Opus 5.5 on Sep 24, 2026 from this case’s record on this site, and published without editorial review. The probabilities are the model’s judgment, not measured frequencies, and they are scored publicly as cases resolve. Not legal or investment advice. How the forecasts are made