After months of dodging legal papers, former NBA basketball star Shaquille O’Neal (Shaq) has finally been served in a class-action lawsuit against a Florida-based fintech company called FTX. The lawsuit alleges that FTX, which specializes in cryptocurrency trading, engaged in deceptive and illegal practices, including manipulating the market and engaging in wash trading. Shaq faces an FTX class-action lawsuit that also accuses FTX of failing to disclose conflicts of interest and of misrepresenting the risks associated with its products.
The Allegations Against FTX
O’Neal, who has served as a spokesperson for FTX, is not named as a defendant in the suit but is believed to have played a role in promoting the company’s services to potential investors. As a result, lawyers for the plaintiffs sought to depose him as a witness in the case.
However, O’Neal’s attorneys repeatedly claimed that they could not locate him to serve him with the deposition subpoena. The attorneys for the plaintiffs accused O’Neal of deliberately avoiding service, but O’Neal maintained that he was not trying to evade the subpoena.
O’Neal’s Legal Team Responds
According to court documents, O’Neal was finally served with the subpoena on April 16th, after a three-month search that reportedly involved private investigators and multiple attempts to reach him at his various residences and business addresses.
In a statement to the media, O’Neal’s legal team said that they had been working with the plaintiffs’ attorneys to arrange a mutually convenient date and time for the deposition. They also claimed that O’Neal had never sought to evade service of the subpoena.
“Mr. O’Neal is fully cooperating with the plaintiffs and intends to testify truthfully and fully in this matter,” the statement read. “He takes his responsibilities as a spokesperson and endorser very seriously, and he believes that investors have a right to full and accurate information about the products and services they are considering.”
FTX’s Plans for reopening
After Shaq faces, FTX class-action lawsuit was filed in January of this year by a group of investors who claim to have lost money as a result of the company’s alleged wrongdoing. The suit seeks to recover damages on behalf of all investors who were affected by FTX’s actions.
The case is just one of several legal challenges facing FTX, which has been rapidly recovering funds to reopen again. The company, which is based in Miami, has recovered more than $7 billion in funds till now.
O’Neal’s Role in the Lawsuit
FTX has also faced criticism for its aggressive marketing tactics and its alleged failure to disclose conflicts of interest. In addition to the class-action lawsuit, the company has been hit with multiple regulatory investigations and lawsuits in recent months.
As for O’Neal, it remains to be seen what role he will play in the FTX lawsuit. While he is not named as a defendant, his involvement with the company as a spokesperson and investor could make him a key witness in the case. It will be interesting to see whether his posing for FTX will have a major negative impact because of this lawsuit.
For now, however, O’Neal can breathe a sigh of relief that the months-long chase to serve him with legal papers has finally come to an end, even though he is mentioned in the FTX class-action lawsuit. Whether that relief will be short-lived remains to be seen as the FTX lawsuit and other legal challenges continue to loom over the cryptocurrency industry.
Also Read: US faces serious danger as China, Russia, and the Middle East strengthen their bond.
