FTX lawsuit

The plaintiffs have until December to show cause as to why the two sports stars should not be dismissed from the lawsuit.

A federal judge in Florida, United States, is considering dismissing former NBA superstar Shaquille O’Neal and tennis athlete Naomi Osaka from the FTX lawsuit, pointing out that it’s unclear whether the two had been served. 

In a paperless order, U.S. District Judge Kevin Moore instructed the plaintiffs to provide cause on why O’Neal and Osaka shouldn’t be dismissed from the suit. According to Moore, whether the two sports stars have been served is unclear. The judge gave the FTX customers until December to show cause.

The order was one of the several the judge issued on March 9. In another order, Moore reprimanded other celebrity defendants for requesting to push back a scheduled conference without following the proper steps.

Celebrity defendants, including Tom Brady, Gisele Bündchen, Kevin O’Leary, David Ortiz and Trevor Lawrence, asked for a time extension. However, the judge pointed out that the request should have come from the plaintiff’s side. Moore said:

“The court ordered plaintiff, not the defendants, to move for an extension of time to hold the scheduling conference.“

Because of this, the conference will proceed as scheduled, or the plaintiff may move for an extension of time to hold the conference, according to Moore.

Related: Investors might have avoided FTX if the SEC had addressed Bitcoin ETFs, says BitGo CEO

Meanwhile, as cases against FTX pile up, some plaintiffs requested the consolidation of lawsuits against the bankrupt exchange. However, on March 8, a judge denied the consolidation request, highlighting that the defendants have not yet been allowed to respond. U.S. District Judge Jacqueline Corley recently denied the request to consolidate five proposed class-action suits against FTX.

On the same day, lawyers representing former FTX CEO Sam Bankman-Fried noted that it might be necessary to push back the criminal trial scheduled to start in October 2023. While the lawyers did not formally request a date change, they pointed out that it may be needed because they are still waiting for evidence to be turned over, and Bankman-Fried accumulated more charges in February.

A U.S. judge denied the request to consolidate, saying that the defendants had not had the opportunity to respond.

A federal judge has refused to consolidate several proposed class-action lawsuits against the FTX exchange by investors. According to the judge, the exchange and its defendants have not yet been heard. 

On March 8, United States District Judge Jacqueline Scott Corley laid down the order that denied plaintiffs a request to consolidate five proposed class-action lawsuits against the bankrupt crypto exchange. Despite no defendants opposing the motion, the judge pointed out that not all defendants had the opportunity to respond yet. The order stated: 

“While Plaintiffs state that no Defendant has filed an opposition, they offer no declaration attesting that they have met and conferred with Defendants and that they do not oppose consolidation.”

Plaintiffs, including Julie Papadakis, Michael Elliott Jessup, Stephen Pierce, Elliott Lam and Russell Hawkins, accused the former FTX CEO Sam Bankman-Fried and other executives of misappropriating assets, filing cases in California. While all the plaintiffs are going after Bankman-Fried, the cases also include various other defendants, including outside auditors and those promoting the exchange.

Because of this, the judge also pointed out there’s no need to consolidate before hearing the defendants’ side. “The Court discerns no need to do so now without giving Defendants the opportunity to be heard. And it would be premature to appoint interim class counsel before consolidation,” the order wrote.

Related: DOJ seeks to narrow Sam Bankman-Fried’s bail terms, use only flip phones

Meanwhile, Bankman-Fried’s lawyers have recently signaled that there might be a need to push back the criminal trial scheduled in October. In a letter dated March 8, lawyers representing Bankman-Fried said that while they’re not formally requesting a date change, it may be necessary as they’re waiting for a substantial chunk of evidence to be sent to them. In addition, the lawyers noted that more charges were filed against Bankman-Fried in February.