Hall of Fame quarterback Brett Favre is named in a $16 million lawsuit filed by an investment firm, alleging a social media company that Favre co-owned fraudulently misrepresented its growth potential in order to lure financial backers.
According to court documents obtained by The Blast, Louisiana-based Callais Capital Management claims Favre and the executives of a fledgling social media company called Sqor Sports made negligent and fraudulent misrepresentations to entice CCM to invest in the company.
Sqor promoted itself as a social media network that would connect fans to their favorite pro athletes by compiling all of an athlete’s social media accounts into their Sqor profile.
In return, athletes would be able to use their enhanced social media followings to promote themselves or other causes they support.
The plaintiffs believed the $16.75 million they invested would be used by Sqor to help “fund immediate international growth and allow the company to secure up to 10 major sports enterprises over the next six months.”
CCM also claims Squor “negligently and/or fraudulently misrepresented” their projected income for 2018 as $44 million.
Despite CCM’s investment, the Sqor.com website is no longer operational and the company hasn’t posted on social media in May.
Despite representations that Sqor was expecting to raise up to $25 million through a round of equity capital, CCM says this was a lie. They claim the company provided a growth chart that “negligently and/or fraudulently misrepresented” their projected income for 2018 as $44 million.
To entice CCM’s investment, the company alleges Sqor falsely claimed it had more than 325 million users and a reach of more than 350 million. They also allege Sqor misrepresented their social media platform’s user growth metrics, saying they exceeded that of Twitter and LinkedIn.
Favre was paid by Sqor and received an equity stake in the company. He was added to the company’s board of directors.
The suit claims Favre allowed the size of his social media following to be falsely stated, contributing to the alleged misrepresentation of Sqor’s social media presence.
Favre appeared on behalf of Sqor to promote the company.
CCM also claims Sqor told them they had entered into a verbal contract with the NFL Players Association that would soon result in an official partnership, and that the company was in negotiations with various NFL players, along with teams like the Chicago Bulls and Los Angeles Lakers to join the upstart network.
They also allege Sqor boasted use and/or endorsement of its platform by such athletes as Conor McGregor, Rob Gronkowski and Allen Iverson. CCM said those claims were either false or erroneous.
CCM is requesting the return of their initial $16.75 million investment, plus damages. Favre has yet to comment on the suit.
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