- The lawsuit was brought by investors who alleged they were misled by celebrity endorsements, including O’Neal’s.
- His payout exceeds what he earned from the FTX commercial.
US basketball former superstar Shaquille O’Neal has agreed to pay $1.8 million to settle a class-action lawsuit brought by investors who claimed they were misled by his promotion of the now-defunct cryptocurrency exchange FTX, CNBC reported.
The former NBA superstar, once featured in FTX commercials, became a target of legal action after the exchange’s high-profile collapse in late 2022. The lawsuit, filed on behalf of customers who deposited funds between May 2019 and the firm’s implosion, accused several celebrities, O’Neal among them, of contributing to investor losses by endorsing the platform.
O’Neal reportedly received $750,000 for his role in a single FTX advertisement. Now, he will pay more than double that amount to resolve the claims. If the court approves the agreement, the settlement will absolve him of any further liability related to the case.
According to media reports, the deal includes a clear clause: O’Neal will not be permitted to seek reimbursement from FTX’s bankruptcy estate, nor will he admit any wrongdoing. This shields him from ongoing legal exposure while allowing investors to recover part of their losses.
See Related: Legendary Basketball Player Shaquille O’Neal Served In $1B FTX Class Action Lawsuit
Shaq Maintains He Was Just A Hired Actor
From the beginning, O’Neal has downplayed his involvement with the failed crypto exchange, saying he was just a paid spokesperson for a commercial.
Despite this claim, legal proceedings grouped him with other high-profile endorsers such as NFL star Tom Brady and comedian Larry David, whose names also appeared in lawsuits tied to FTX’s promotional campaigns.
O’Neal’s settlement adds another chapter to the unraveling saga of FTX. The company’s founder, Sam Bankman-Fried, was sentenced to 25 years in prison after being found guilty of defrauding customers and investors. His sentence could reportedly be reduced by over four years under certain conditions.
While celebrity endorsers distance themselves from the scandal, many FTX users continue to await compensation through bankruptcy proceedings.
