Decision Made On Shaquille O'Neal, $1.8 Million Lawsuit
The surge in cryptocurrency advertising several years ago led to a number of scams that in turn led to lawsuits against a number of well-known athletes and celebrities. Among them is Shaquille O'Neal, who recently saw a decision made in an ongoing multi-million dollar lawsuit against him.
Shaq has been involved in a class action lawsuit related to the downfall of the FTX cryptocurrency exchange. He was one of several celebrities including Tom Brady and Steph Curry who are accused of touting FTX as reputable and trustworthy investment options through their paid endorsement deals. FTX later collapsed and billions of dollars evaporated into the ether.
But according to ABC News, Shaq has proposed to settle and pay out $1.8 million in order to detach himself from the lawsuit. Under the terms of the settlement, Shaq will not acknowledge any wrongdoing. The proposal does not end the lawsuit, but it will end Shaq's part in it and also cover legal and administrative costs.
"While the proposed settlement with O'Neal had been agreed to in April, the payment amount and other terms were disclosed in a filing with the U.S. District Court, Southern District of Florida, Miami Division, earlier this week," ABC's Michelle Chapman wrote.
"The settlement class includes anyone who deposited funds into FTX or bought its FTT token between May 2019 and late 2022.
"The agreement, which still needs court approval, would provide O'Neal with a broad release from future claims and also includes a stipulation that he can't seek reimbursement from the FTX estate.
"The payment will be made within 30 days of the settlement being finalized, according to the filing."
ORLANDO, FL - FEBRUARY 13: Shaquille O'Neal speaks to the media during a press conference after the game against the Oklahoma City Thunder on February 13, 2024 at the Kia Center in Orlando, Florida. (Photo by Fernando Medina/NBAE via Getty Images)
Under the leadership of Sam Bankman-Fried, FTX emerged as one of the biggest cryptocurrency exchanges in the world by 2022, ranking third with billions in assets. But in 2022, the company was investigated for depositing funds into ventures without the approval of investors.
FTX was exposed for numerous instances of fraud and the company was forced to shut down. Bankman-Fried was sentenced to 25 years in prison in 2024 and the company has pledged to pay back its customers.
