The lawsuits are bogus. Brady himself lost money, so he didn’t profit off of these people’s losses. He was an exceptional NFL quarterback. That doesn’t make him a financial wiz. That goes for Shaquille, Giselle, and most of the rest.
He lost money perhaps twice. First, he wasted an endorsement for $30 million in worthless paper. Next, he may have to pay taxes on that $30 million because that was the value at the time. But the next year, he can endorse something else and write off the loss.
Maybe though, he could argue the $30 million was fraudulent and never received, so he can avoid the taxable income.
One word...diversify.
They did promote it to their fans.
Technically, Brady did not lose “money”.
He was paid for his services in agreed upon stocks in the company.
It just that the stocks now have no value.