Shaquille O’Neal has settled the FTX investor lawsuit.
As AFROTECH™ previously told you, the former NBA player, who is now a serial entrepreneur, had been named alongside FTX founder Sam Bankman-Fried, Tom Brady, Stephen Curry, Naomi Osaka, and others, as defendants in an $11 billion class action lawsuit that was filed in Florida. The defendants had all been featured in FTX ads. For their involvement, they were being accused of promoting the cryptocurrency exchange, which ultimately filed for Chapter 11 bankruptcy protections and went defunct. The suit stated the defendants endorsed a “fraudulent scheme” that was “designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments.”
O’Neal had attempted to distance himself from FTX.
“People know I’m very, very honest,” O’Neal explained, according to CNBC’s Make it. “I have nothing to hide. If I was heavily involved, I would be at the forefront saying, ‘Hey.’ But I was just a paid spokesperson.”
In a former interview with the outlet, O’Neal had admitted he did not have “full understanding” of cryptocurrency.
“I don’t understand it, so I will probably stay away from it until I get a full understanding of what it is,” he told CNBC’s Make It. “From my experience, it is too good to be true.”
Nonetheless, O’Neal did become directly involved in FTX’s crypto world by being featured in social media content and at live events, according to CNBC. He also encouraged the use of unregistered securities. Now it appears, O’Neal has agreed to a $1.8 million payout without admitting wrongdoing. The payout will go towards legal fees, notice and administration costs, and compensation to investors. The settlement also will absolve O’Neal from future liability and will prevent him from receiving reimbursement from the FTX bankruptcy estate.
“We are pleased to have this matter behind us,” counsel for O’Neal said in a statement, per the outlet.
Last month, the other previously mentioned celebrities had their cases largely dismissed, according to CNBC. A judge determined they had not been aware of FTX’s fraud or “had the requisite intent to deceive or defraud investors.” However charges still remain for “violations of state securities laws in Florida and Oklahoma, which prohibit the sale of unregistered securities.”
