NBA Hall of Famer (and prolific franchise owner) Shaquille O’Neal will pay $1.8 million to settle claims from investors that he misled them into investing in FTX, the bankrupt and infamous crypto exchange formerly led by Sam Bankman-Fried.
The settlement will cost Shaq around $1 million more than he got paid for the FTX commercial in the first place, which was reportedly around $750,000.
RELATED: From Tom Brady to Kevin O’Leary – See Who Lost Big in the Wake of the FTX Crypto Collapse
After being named in a class-action lawsuit in December 2022 alongside other celebrities who starred in FTX promotions, including Tom Brady and Larry David, O’Neal told CNBC that he was just acting in a commercial, not giving financial advice.
“A lot of people think I’m involved, but I was just a paid spokesperson for a commercial,” O’Neal said at the time.
O’Neal allegedly dodged process servers for months but was served with legal documents in April 2023.
If approved by the judge overseeing the case, the settlement would officially end the class action lawsuit, which was filed by FTX investors who deposited money between May 2019 and late 2022, and release him from future liability in this matter, fully resolving all claims without O’Neal having to admit any wrongdoing. It also bans him from seeking reimbursement from the FTX estate, per CNBC.
RELATED: Sam Bankman-Fried Sentenced to 25 Years in Prison for Multibillion-Dollar Crypto Fraud
Bankman-Fried is currently serving a 25-year prison sentence for seven counts of fraud and conspiracy related to the FTX collapse.
Business Insider reports he may be released four years early for good behavior.