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Update:
- NASCAR asked U.S. District Judge Paul G. Byron on May 12 to permanently toss two complaints by investors in a cryptocurrency called LGBCoin.
- Investors claim NASCAR broke a sponsorship deal for a meme coin named for a viral moment about the catchphrase “Let’s Go Brandon” regarding President Joe Biden.
- The suit, amended three times since first filed in April 2022, alleged investors suffered a loss when the digital asset’s trading prices fell to zero after NASCAR rescinded a sponsorship deal between the digital asset’s trustee and NASCAR driver Brandon Lee Brown.
- Byron previously dismissed the complaint, but investors filed another lawsuit a week later.
- The investors’ attorneys told Law 360 the plaintiffs believe the amended complaint provides “specificity” to establish liability against NASCAR.
‘Let’s go Brandon’ NASCAR class action overview:
- Who: NASCAR driver Brandon Brown and his racing company asked a judge to toss out a class action lawsuit against them.
- Why: Brown says the plaintiffs have not proven claims that he was involved in a scheme to make the digital currency LGBCoin spike and then crash.
- Where: The class action was filed in Florida federal court.
(July 8, 2022)
NASCAR driver Brandon Brown and his racing company are fighting a class action lawsuit that claims he was involved in a scheme to launch a cryptocurrency that would reach an inflated value and then crash.
On July 5, Brown and his company Brandonbilt Motorsports LLC asked U.S. District Judge Paul G. Byron and U.S. Magistrate Judge Daniel C. Irick to dismiss the claims they face from buyers of ‘Let’s Go Brandon’ meme tokens or LGBCoin.
Plaintiffs Eric De Ford and Sandra Bader filed the class action lawsuit against the creators of LGBCoin, Brown and his company in April.
They are looking to represent anyone who bought LGBCoin between Nov. 2, 2021, when the coin launched, and March 15, 2022, when the price dropped.
The “Let’s Go Brandon” became a popular chant and meme in October 2021 when NBC Sports reporter Kelli Stavast interviewed Brown following a NASCAR race at the Talladega Superspeedway in Alabama, according to TODAY. The crowd behind them shouted, “F— Joe Biden,” which Stavast mistook as, “Let’s go, Brandon!” The phrase then became a viral way to insult the president.
‘Let’s go Brandon’ class action alleges partnership with NASCAR caused coin price to spike then drop
According to the lawsuit, the creators of LGBCoin met with NASCAR executives days after the coin launched to discuss whether the cryptocurrency could become an official sponsor of Brandonbilt Motorsports.
At the end of December LGBCoin and Brandonbilt Motorsports reportedly announced that the digital currency would be the full-season primary partner for the company in 2022, the ‘Let’s go Brandon’ class action states..
The announcement caused the price of LGBCoin to spike, the plaintiffs allege, leading the coin to cost more than five times as much as it did when it launched.
However, days later, NASCAR announced that LGBCoin was rejected as a sponsor of BMS. The statement caused the rate for LGBCoin to plummet by 63%, the plaintiffs say.
De Ford and Bader are suing for fraud, theft, unjust enrichment, civil conspiracy and violation of the Securities Act.
However, Brown argues that the plaintiffs never explained in their suit how he and his company are involved in the alleged scheme.
“Rather than focusing on specifically tailoring the issues at hand in order to assert cognizable claims against the racing defendants, the amended complaint instead reads as a fanciful novella, filled with maliciously intended disparaging statements, wide-ranging assumptions, and — frankly — irrelevant statements solely included to cast the racing defendants in a negative light,” he told the judge.
In 2011, NASCAR was hit with a class action lawsuit alleging a text message promoting coverage of the 2011 Daytona 500 sent to Sprint phones violated the Telephone Consumer Protection Act.
What do you think of the allegations in this case? Let us know in the comments!
De Ford and Bader are represented by Aaron M. Zigler and Robin Horton Silverman of the Zigler Law Group LLC and John T. Jasnoch and Sean T. Masson of Scott + Scott Attorneys at Law LLP.
The ‘Let’s go Brandon’ NASCAR lawsuit is De Ford v. Koutoulas, et al., Case No. 6:22-cv-00652, in the U.S. District Court for the Middle District of Florida.
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6 thoughts onNascar asks judge to dismiss crypto meme coin lawsuit
Please add me.
Thanks!
This coin peaked at $0.0000000002 – hahaha, people actually bought a coin worth 10,000th of 1 penny?
When you buy crypto, you literally bought some 1s and 0s that have no intrinsic value, only value that people claim it holds.
Crypto is not backed by governments, dollars or anything.
Why would anyone buy this coin? Sorry but your money gone. You can’t sue for fraud when it was a legitimate (LOL) crypto that advertised at Nascar. All crypto is treated as gambling/stock investing and taxed accordingly – see TurboTax. So you can lose money.
The fact the judge tossed the first lawsuit shows you everything. BTW, the guys behind the coin are long gone, spent your money. There is nothing to sue for
I bought LGBC
Keep up the good work .
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I purchased approximately $35,000 of LGBC. Can I be added to this law suit to try and get my money back?