Shaquille O’Neal Reaches $1.8M FTX Lawsuit Settlement

Shaquille O’Neal has agreed to a proposed $1.8 million settlement, pending court approval, to resolve a class action lawsuit accusing him of misleading investors by endorsing the bankrupt crypto exchange FTX. The settlement will cover legal fees, administrative costs, and compensation for affected investors, and grants O’Neal broad protection from future liability without requiring an admission of wrongdoing. O’Neal is the first celebrity defendant to settle, while claims against others like Tom Brady and Gisele Bündchen have largely been dismissed. Plaintiffs alleged O’Neal’s endorsements portrayed FTX as trustworthy, contributing to investor losses when the exchange collapsed in November 2022. The case highlights ongoing risks for celebrity crypto endorsers, as O’Neal has faced previous legal troubles for similar promotions. FTX founder Sam Bankman-Fried is currently serving a 25-year prison sentence for an $11 billion fraud.