Shaquille O’Neal Settles FTX Lawsuit for $1.8 Million

NBA legend Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit brought by investors in the collapsed crypto exchange FTX. The investors allege that O’Neal misled them by appearing in ads for the collapsed cryptocurrency exchange. The payout is about $1 million more than the $750,000 O’Neal was reportedly paid for his role in an FTX commercial.

O’Neal was among several celebrities, including Tom Brady and Larry David, who were sued for promoting the exchange before its collapse in late 2022. O’Neal has maintained that he was simply a paid actor in the ad, stating after the exchange’s collapse that he was “just a paid spokesperson for a commercial.”

If the settlement is approved, O’Neal will be released from all future claims tied to the lawsuit. He will not be allowed to seek reimbursement from the FTX bankruptcy estate and will not have to admit any wrongdoing.

The lawsuit was filed on behalf of FTX users who deposited funds between May 2019 and late 2022, before the company’s dramatic failure. FTX’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison for defrauding customers and investors.

This settlement marks a significant development in the ongoing legal fallout from the FTX collapse. It underscores the risks that celebrities face when endorsing financial products, particularly in the volatile cryptocurrency market. The case also highlights the potential legal consequences for public figures who promote such products without fully disclosing the risks involved.

O’Neal’s settlement is a reminder of the importance of due diligence and transparency in financial promotions. As the cryptocurrency industry continues to evolve, it is crucial for both investors and endorsers to be aware of the potential pitfalls and legal implications of their actions. The outcome of this case may set a precedent for future lawsuits involving celebrity endorsements in the financial sector.