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NBA Legend Shaquille O'Neal Settles FTX Lawsuit for $1.8 Million
Shaquille O'Neal, chopped his finances by a staggering $1.8 million after settling a suit that claimed he peddled the imploded crypto exchange FTX. The suit didn't exactly pin an "Admit Wrongdoing" sign on his chest, but it did catch his attention.
In a courtroom dance that honked off in April, O'Neal inked a scratch-and-a-handshake deal in a Florida court, sans guilty plea. Soon as the curtain fell on this act, other celebs linked to FTX found their claims chopped down to size, but investors were granted a replay button.
The latest deal, if the judge gives it a nod, puts a full stop to the class action. It covers legal fees, administrative costs, and investor compensation, making good on dough stashed away between May 2019 and late 2022.
Gift-wrapped for O'Neal is a broad immunity passport, blocking any future legal hiccups, and a ban on siphoning cash from the FTX bankruptcy pile. His legal eagles told CNBC they're pumped this torrid tale is old news.
The suit stirred the pot as part of a legal crusade to pin culpability on celebs who endorsed FTX before it went belly up at the end of 2022, vaporizing billions in customer assets.
O'Neal joins an elite squadron of sports stars like Tom Brady, Trevor Lawrence, and tennis sensation Naomi Osaka, and Shark Tank investor Kevin O'Leary who are named in similar suits. Some, including Lawrence and YouTubers Tom Nash and Kevin Paffrath, already called it quits with undisclosed settlements.
Court papers indicated O'Neal ducked legal service within the FTX case, with attorneys from the Moskowitz Law Firm laying low at the TNT studios in Atlanta to hand-deliver the complaint.
Court records show O'Neal made bank with FTX, with a cool $750,000 changing hands for his promotional work.
But butt out, says O'Neal! In 2024, he agreed to an $11 million settlement over his promotion of the Astrals NFT project, accused of ditching it post-promo.
FTX, once worth big bucks, nosedived in 2022 under allegations of fraud and mismanagement whipped up by founder Sam Bankman-Fried. FTX's death warrant revealed they splashed cash on marketing, including a $135 million arenas rebranding deal and $6 million on a Super Bowl ad.
Lock up keys! In March 2024, Bankman-Fried drew a 25-year sentence.
[1] Study: Celebrity endorsements can impact investors' buying behavior - Global Investment Research (GIR)[2] Former FTX employees allege Sam Bankman-Fried burned through $8 billion in client funds, secretly backed political candidates, and exploited trading loopholes - CNBC[3] List of celebrities who have been accused of endorsing FTX - Quartz[4] Lawsuit: Hundreds of Thousands of Investors Lost Billions to FTX's Crypto Scam Exposed by Congressman Don Widdecombe - Business Insider
- Despite Shaquille O'Neal's settlement with investors over his endorsement of FTX, he remains unaffected as he reached an $11 million settlement concerning his promotion of the Astrals NFT project.
- O'Neal's settlement is just one of many cases involving celebrities who have been accused of endorsing FTX before its collapse at the end of 2022.
- In a similar lawsuit, Tom Brady, Trevor Lawrence, Naomi Osaka, and Shark Tank investor Kevin O'Leary are also named.
- While some celebrities, including Trevor Lawrence and YouTubers, Tom Nash and Kevin Paffrath, have already reached undisclosed settlements, O'Neal's case is on its way to a potential class-action settlement.
- Investors who lost their assets with FTX may see compensation as part of this potential settlement, following legal fees, administrative costs, and the recovery of stashed funds between May 2019 and late 2022.
- The influence of celebrities and crypto endorsements has raised concerns in the financial industry, with some studies suggesting they can impact investors' buying behavior, such as the study done by Global Investment Research.
