Magic Johnson NFT Lawsuit Dismissed

Remember that lawsuit buzzing around the MagicVerse NFT project, the one with whispers of Magic Johnson’s involvement? Well, it looks like that legal drama has reached its curtain call. Front Office Sports is reporting that the case has officially been dropped, bringing a close to the dispute.

What Was the Lawsuit About?

At the heart of the matter was a Texas-based jewelry company, DoneRight & Company LLC. They claimed they were persuaded by Carrie Lyn Henman, an associate of Magic Johnson, to invest a significant sum into an NFT and metaverse venture. The project, however, never actually got off the ground.

Adding to the allure, the company was reportedly told that rap mogul Dr. Dre was also backing the project. Specifically, Henman allegedly mentioned that Dr. Dre planned to invest a hefty $500,000, making the opportunity seem even more solid.

Magic Johnson’s Alleged Role

The lawsuit painted a picture of Magic Johnson not just as a celebrity endorser, but as an active player in the project’s financial dealings. The complaint suggested he was directly involved in coordinating how investor funds would be managed, which is why he was named as a defendant.

DoneRight & Company LLC also stated they were promised exclusive rights, royalty payments, and marketing opportunities. Believing in the venture, they invested $250,000 in August 2022. Unfortunately, their investment seemed to vanish into thin air.

The Project’s Demise and Dismissal

According to the complaint, the project never launched, no NFTs were ever minted, and no royalties were ever paid. To make matters worse, communication from the defendants reportedly ceased, leaving the jewelry company out of pocket for the full $250,000. The lawsuit was initially filed in February 2026.

However, in a twist of fate, both parties agreed to dismiss the case with prejudice on March 31, 2026. This means the lawsuit cannot be refiled. Attorneys for both sides released a joint statement, noting, “Once the facts became clear to both parties, we worked cooperatively to bring the issue to a close. We are pleased that this matter has been resolved amicably and remain committed to excellence in all of our business practices.”

A Trend in NFT Lawsuits

This isn’t the first time high-profile figures have found themselves entangled in lawsuits related to NFT projects. As AFROTECH™ has previously covered, Shaquille O’Neal was named in a class-action lawsuit concerning the Astrals Project back in 2023. He was one of the project’s founders.

That particular lawsuit stemmed from allegations that the Astrals tokens sold were unregistered, making them illegal under securities law. O’Neal and the other defendants eventually agreed to an $11 million settlement in 2024. These cases highlight the evolving legal landscape surrounding digital assets and celebrity endorsements.