Former Green Bay Packers player Brett Favre is under fire for the failed launch of a sports-related social media start up.
The retired American quarterback, 48, is being sued by a capital management firm for over an eye-popping $16million for fraudulently misrepresenting the company’s prospects.
Mr Favre joined the board of directors for the social media start up Sqor back in 2013 and later became co-owner of the company. But the platform, intended to help athletes monetize themselves via social media pull, failed to take off.
Former Green Bay Packers player Brett Favre, 48, is being sued for over $16million for his failed social media start up Sqor that intended to help athletes monetize themselves via the platform
Now the Callais Capital Management, based in Louisiana, claims it was convinced by ‘negligent and fraudulent misrepresentations’ to invest in the company.
The lawsuit demands that Mr Favre and his business partners of Sqor return Callais’ initial investment as well as damages.
According to The Blast, Sqor said it expected to raise up to $25million through a round of equity capital, but Callais claims this was a lie and that Sqor owners additionally provided a growth chart that misrepresented the company’s projected income for 2018 as $44million.
Sqor also claimed they had over 325million fans and users and a social reach of over 350 million, and that their user growth was greater than that of Twitter and LinkedIn, which Callais claims as ‘materially misrepresented’.
The former football star made history for his 20-year career with the NFL, pictured above playing for the Minnesota Vikings
The quarterback made history as the only player to be awarded three consecutive MVP awards and in 2016 was inducted in the Pro Football Hall of Fame in Canton, Ohio
The Blast also reported that Sqor claimed their were working on getting sports teams like the Lakers, Chicago Bulls, and NFL players to join the social network and had a verbal agreement with the NFL Players Association to move towards an official partnership.
Further claims by Sqor include work with athletes such as fighter Conor McGregor, Rob Gronkowski, Odell Beckham Jr., Allen Iverson. Callais claims in the lawsuit that the spoken athletes were not actually using Sqor.
Mr Favre has not shared comment on the lawsuit.
The former football player turned entrepreneur rose to fame thanks to his 20 year career in the NFL in which he played 11 Pro Bowls and made history as the only player to be awarded three consecutive MVP awards. In 2016 was inducted in the Pro Football Hall of Fame in Canton, Ohio.