# Celebrities named in class action are the latest looped into meteoric FTX fall **URL:** \ **Category:** Factual Questions\ **Created:** [November 20, 2022, 1:10am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234 "2022-11-20T01:10:22Z")\ **Posts on this page:** 20\ **Page:** 4
**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\ **Post date:** [November 27, 2022, 10:48pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/61 "2022-11-27T22:48:59Z")
In the Uk we have a “celeb” who is mostly known for interviewing celebs - that is allowing them to plug their latest book etc, in return for a few minutes of “entertaining” chat. A pretty common format the world over I imagine. His shows ended a few years ago, but he is still cashing in (supplementing his pension) by appearing in ads selling life and funeral insurance, which, even with a superficial examination are a poor deal. Given what has been said above, I wonder which side of the fence he is on? ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [November 27, 2022, 10:57pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/62 "2022-11-27T22:57:04Z")
Read the thread and still confused of two things: Why does a celebrity endorser have a fiduciary duty to the advertisement watchers? Can I “buy Scottish land” via Established Titles and then sue all of the youTube content creators that promoted it because ET is a established as a scam and you don’t actually own any land? ---
**Author:** ![bump](https://avatars.discourse-cdn.com/v4/letter/b/7c8e57/32.png) [@bump](https://boards.straightdope.com/u/bump)\ **Post date:** [November 28, 2022, 12:29am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/63 "2022-11-28T00:29:18Z")
> [@Odesio](#): > > Joe Isuzu selling us, uh ,whatever an Isuzu is? That’s probably the best example. Joe Isuzu is an entirely fictional person, _played_ by David Leisure, who sells Isuzu cars using blatantly and ridiculously embellished marketing points. It’s clearly not Leisure himself saying that an Isuzu has more seats than the Astrodome, nor is it intended to actually be believed. But… if say, William Shatner hauled his ninety-something ass up there and said that he likes Depends, and I’m 90, I should know!" , that’s a totally different sort of endorsement. ---
**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\ **Post date:** [November 28, 2022, 12:36am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/64 "2022-11-28T00:36:42Z")
> [@bump](#): > > That’s probably the best example. Joe Isuzu is an entirely fictional person, _played_ by David Leisure, who sells Isuzu cars using blatantly and ridiculously embellished marketing points. > > It’s clearly not Leisure himself saying that an Isuzu has more seats than the Astrodome, nor is it intended to actually be believed. And, to the point that, not only were Joe Isuzu’s claims about the cars clearly and wildly inaccurate (and played for humor), but the ads featured disclaimers, pointing out the truth. [![](https://img.youtube.com/vi/Qu-gOSBvTas/hqdefault.jpg "MOM - Joe Isuzu") ](https://www.youtube.com/watch?v=Qu-gOSBvTas) ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 28, 2022, 12:44am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/65 "2022-11-28T00:44:17Z")
> [@Saint\_Cad](#): > > Why does a celebrity endorser have a fiduciary duty to the advertisement watchers? Because of consumer protection laws, which prohibit false or misleading advertising: > **[False Advertising Under Consumer Protection Laws](https://www.justia.com/consumer/deceptive-practices-and-fraud/false-advertising/)** > > Learn about the many types of deceptions involved in false advertising, including deceptive descriptions, prices, quantities, comparisons, and warranties. ---
**Author:** ![LSLGuy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lslguy/32/5813_2.png) [@LSLGuy](https://boards.straightdope.com/u/LSLGuy)\ **Post date:** [November 28, 2022, 3:11am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/66 "2022-11-28T03:11:51Z")
> [@Bootb](#): > > > [@The\_Librarian](#): > > > > . . . someone leveraging their fame, their good name: their “celebrity” status. > > On the fairly rare occasions when a distinction needs to be made, this category is more commonly referred to as “famous for being famous.” Not really IMO. Kim Kardashian is famous for being famous. She has no particular skill or public presence except her notoriety. Tom Brady is famous for playing football. Tom Brady is _not_ famous for being famous. He’s famous for being the best quarterback by far in decades, if not ever. To be sure, that gives him no particular expertise in crypto exchanges. Just like I have no particular expertise in crypto exchanges. But I’d make a much less effective spokesman than Brady because he is famous for football and I am famous for … nothing actually, I’m not famous at all. ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [November 28, 2022, 2:24pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/67 "2022-11-28T14:24:03Z")
> [@Northern\_Piper](#): > > Because of consumer protection laws, which prohibit false or misleading advertising: Read it. How do endorsers violate those rules? If I say I like ABC NFTs then how am I liable if it turns out to be a scam? Assume I don’t know it’s a scam. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 28, 2022, 2:43pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/68 "2022-11-28T14:43:49Z")
That’s where due diligence comes in. If you are staring straight at a camera for an advert that will get wide circulation, and say “In my opinion X is a really good deal that will pay off well for you,” you’re encouraging people to buy X. You’re putting your personal status on the line to encourage a commercial transaction. You may well have an obligation to do some research and be sure that there’s a good basis for saying X is a good deal. It will depend on the facts of the case. Larry David being a comedian, his schtick might just be seen as schtick. But if the Sage of Omaha appears in an advert and recommends that people buy shares in X, that’s something different. And, this is an issue of civil negligence, not criminal. Due diligence, properly done, is a widely known standard in civil matters to avoid a negligence suit. ---
**Author:** ![The\_Other\_Waldo\_Pepper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/the_other_waldo_pepper/32/12370_2.png) [@The\_Other\_Waldo\_Pepper](https://boards.straightdope.com/u/The_Other_Waldo_Pepper)\ **Post date:** [November 28, 2022, 2:48pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/69 "2022-11-28T14:48:29Z")
> [@Northern\_Piper](#): > > It will depend on the facts of the case. Larry David being a comedian, his schtick might just be seen as schtick. And, again, what’s interesting is that if it’s _not_ seen as schtick, then he isn’t actually saying anything positive… ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [November 28, 2022, 2:52pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/70 "2022-11-28T14:52:30Z")
Yes, it’s almost as if he planned it for two levels of protection. 😃 “Can’t you people take a joke? You mean your really thought I was serious when I told you to put your money into an unregulated exchange?” ---
**Author:** ![Just\_Asking\_Questions](https://avatars.discourse-cdn.com/v4/letter/j/ba9def/32.png) [@Just\_Asking\_Questions](https://boards.straightdope.com/u/Just_Asking_Questions)\ **Post date:** [November 28, 2022, 4:40pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/71 "2022-11-28T16:40:36Z")
> [@The\_Other\_Waldo\_Pepper](#): > > And, again, what’s interesting is that if it’s _not_ seen as schtick, then he isn’t actually saying anything positive… It’s all very meta. LD isn’t saying anything positive, but the commercial is USING LD to say something positive, by pointing out how many times “LD” has been wrong about things that became successful. Therefore, don’t be like Larry (who we are paying money to be a reverse spokesman, and we, he, and you all know it.). Unless, of course, he was actually against the wheel. Then he has an out. 🙂 ---
**Author:** ![Tired\_and\_Cranky](https://avatars.discourse-cdn.com/v4/letter/t/a87d85/32.png) [@Tired\_and\_Cranky](https://boards.straightdope.com/u/Tired_and_Cranky)\ **Post date:** [November 28, 2022, 8:40pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/72 "2022-11-28T20:40:02Z")
> [@Kent\_Clark](#): > > [Steven Seagal was sued by the FTC in 2020](https://www.sec.gov/news/press-release/2020-42) for a different cryptocurrency scam, and settled out of court. He settled with the SEC as your link notes (not the FTC) for violations of the federal securities laws. [Kim Kardashian](https://www.sec.gov/news/press-release/2022-183), [Floyd Mayweather, Jr. and DJ Khaled](https://www.sec.gov/news/press-release/2018-268) settled similar claims. > [@Northern\_Piper](#): > > > [@Saint\_Cad](#): > > > > Why does a celebrity endorser have a fiduciary duty to the advertisement watchers? > > Because of consumer protection laws, which prohibit false or misleading advertising: Celebrities should not knowingly endorse frauds but that does not mean they have a fiduciary duty to viewers, which implies a high standard of conduct to act only in the best interest of viewers. > [@The\_Other\_Waldo\_Pepper](#): > > And, again, what’s interesting is that if it’s _not_ seen as schtick, then he isn’t actually saying anything positive… But the recommendation is implied. > [@Northern\_Piper](#): > > And, this is an issue of civil negligence, not criminal. Due diligence, properly done, is a widely known standard in civil matters to avoid a negligence suit. But I’m just not clear on how much due diligence an actor in a commercial is supposed to do. Or why anyone would trust Larry David to do it well. ---
**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\ **Post date:** [December 2, 2022, 6:56pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/73 "2022-12-02T18:56:28Z")
> [@Loach](#): > > They became part owners of the company. I don’t know what percentage. Certainly not enough to make business decisions for the company. But does this make them more liable or less liable? The plaintiffs can argue they are as liable as any other owner. In the US, shareholders are generally only liable to the extent of the value of the equity they hold. ---
**Author:** ![garygnu](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/garygnu/32/2924_2.png) [@garygnu](https://boards.straightdope.com/u/garygnu)\ **Post date:** [December 2, 2022, 8:58pm UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/74 "2022-12-02T20:58:40Z")
The whole bit where he lies verbally but the truth is subtitled below was adapted from Leisure’s stand-up routine. Just in case he needed an additional layer of “not meant to be serious” theoretical defense. ---
**Author:** ![md-2000](https://avatars.discourse-cdn.com/v4/letter/m/9d8465/32.png) [@md-2000](https://boards.straightdope.com/u/md-2000)\ **Post date:** [December 3, 2022, 6:19am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/75 "2022-12-03T06:19:01Z")
> [@Bill\_Door](#): > > The teens weren’t buying the acne medication, their parents were. A 13 year old in 1978 was born in 1965. If their parents were 20 at the time the teen was born the parents were born in 1945, prime Pat Boone demographics. “Hi, Pat Boone here. If your kid looks like mine used to - goalie for the dart team - then try this here medication for them there monster zits. I gave it to my daughter and now she’s a 24-carat smooth-skinned celebrity with her own hit record…” ---
**Author:** ![Richox](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@Richox](https://boards.straightdope.com/u/Richox)\ **Post date:** [December 3, 2022, 6:40am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/76 "2022-12-03T06:40:00Z")
> [@Tired\_and\_Cranky](#): > > But I’m just not clear on how much due diligence an actor in a commercial is supposed to do. Or why anyone would trust Larry David to do it well. This is what I can’t understand either. Same for the Brady ad. If Brady, or LD, asks his lawyer to do some basic research, perhaps garnering an answer to the following questions: Does the company actually offer the services it says it does? Are /have any of the directors been involved in criminal or civil legal issues? Does the company appear to have sufficient revenue and capital to be considered an ongoing solvent business? Is the company operating legally in whatever jurisdiction I am advertising in? Is that small piece of work, scouring through mostly public records to achieve , sufficient to be considered due diligence? I would’ve thought so. ---
**Author:** ![The\_Librarian](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/the_librarian/32/402_2.png) [@The\_Librarian](https://boards.straightdope.com/u/The_Librarian)\ **Post date:** [December 3, 2022, 9:32am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/77 "2022-12-03T09:32:30Z")
Are you claiming any lawyer would come back with a “yes” on any of those questions? ---
**Author:** ![Richox](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@Richox](https://boards.straightdope.com/u/Richox)\ **Post date:** [December 3, 2022, 10:04am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/78 "2022-12-03T10:04:53Z")
I’m not sure. My thought is, if they come back with a No, is that sufficient due diligence to absolve a celebrity endorser? ---
**Author:** ![The\_Librarian](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/the_librarian/32/402_2.png) [@The\_Librarian](https://boards.straightdope.com/u/The_Librarian)\ **Post date:** [December 3, 2022, 10:14am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/79 "2022-12-03T10:14:52Z")
Given that FTX was an utter shambles on every level. There must be _some_ point, way before FTX levels, where your due diligence would fail. There was _no_ bookkeeping. No report from any accountant. It was just the curly guy saying “line goes up”. It doesn’t matter what the answers to those questions are; it matters that there is someone or something to answer them, with documents, bank statements… anything! If anybody would have looked at anything and tried to verify any of it they would have come up blank. Any kind of research would have shown there was nothing there. ---
**Author:** ![Whack-a-Mole](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whack-a-mole/32/141_2.png) [@Whack-a-Mole](https://boards.straightdope.com/u/Whack-a-Mole)\ **Post date:** [December 4, 2022, 1:03am UTC](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234/80 "2022-12-04T01:03:39Z")
> [@Francis\_Vaughan](#): > > Right now there is an interesting one in the spotlight that I bet many here will have seen. Established Titles. I doubt anyone actually believed the spiel that you are actually getting title to a square foot of Scotland, and them becoming a Lord. FWIW (tl;dw he opines that it is a scam and might be illegal): [![](https://img.youtube.com/vi/NG4Ws74RV04/maxresdefault.jpg "Yes, Established Titles Is A Scam\*") ](https://www.youtube.com/watch?v=NG4Ws74RV04) [Previous page](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234.md?page=3) [Next page](https://boards.straightdope.com/t/celebrities-named-in-class-action-are-the-latest-looped-into-meteoric-ftx-fall/975234.md?page=5)