Former NBA Star Shaquille O’Neal Agrees to Pay $1.8M to Settle FTX Suit

Shaquille O’Neal has agreed to pay out $1.8 million in a category motion lawsuit alleging he helped promote the collapsed crypto trade FTX.

The retired NBA star initially settled the case in precept in April with out admitting wrongdoing in a Florida federal court docket. Shortly after, a number of different instances in opposition to FTX-linked celebrities noticed their claims narrowed, though buyers have been permitted to re-plead their claims. 

The newest deal, if accepted by the court docket, would formally finish the category motion and canopy authorized charges, administrative prices, and compensation to buyers who deposited cash or held FTX’s token, FTT, between Could 2019 and late 2022.

It additionally grants O’Neal a sweeping launch from future legal responsibility and bars him from in search of compensation from the FTX chapter property.

Legal professionals for O’Neal told CNBC they have been “happy to have this matter behind us.”

The category motion stems from claims that O’Neal “actively participated” in selling FTX’s supply and sale of unregistered securities. He as soon as appeared in a now-infamous business declaring he was “all in” on the platform, regardless of later stating he didn’t absolutely perceive crypto.

Toes to the fireplace

The lawsuit was a part of a broader authorized effort to carry celebrities accountable for endorsing FTX earlier than its collapse in late 2022. 

Plaintiffs allege that figures like O’Neal helped painting FTX as reliable and bonafide, encouraging adoption of a platform that finally failed, leaving billions in buyer property lacking.

Different celebrities named in comparable fits embody NFL stars Tom Brady and Trevor Lawrence, tennis champion Naomi Osaka and Shark Tank investor Kevin O’Leary. Some, together with Lawrence and YouTubers Tom Nash and Kevin Paffrath, have already reached undisclosed settlements.

O’Neal beforehand confronted scrutiny for dodging authorized service within the FTX case, with attorneys from the Moskowitz Legislation Agency reportedly staking out the TNT studios in Atlanta to ship the grievance.

Courtroom paperwork present O’Neal was paid roughly $750,000 for his promotional work with FTX.

This isn’t O’Neal’s solely crypto-related authorized difficulty. In 2024, he agreed to an $11 million settlement over his promotion of the Astrals NFT undertaking, which plaintiffs claimed he deserted after selling it.

FTX, as soon as valued within the tens of billions, collapsed in 2022 amid allegations of fraud and mismanagement by founder Sam Bankman-Fried. 

The corporate’s chapter filings revealed huge spending on advertising offers, together with a $135 million naming rights settlement for the Miami Warmth’s area and over $6 million on a 30-second Tremendous Bowl advert.

Bankman-Fried was sentenced to 25 years in jail in March 2024. 

Edited by Sebastian Sinclair