Dodgers Star Shohei Ohtani Quietly Settles Lawsuit Over $240 Million Hawaii Development—Days Before Start of MLB Season

Los Angeles Dodgers pitcher Shohei Ohtani and his agent, Nez Balelo, have reportedly settled a lawsuit that was launched against them over a high-profile $240 million housing development in Hawaii in 2025.

Ohtani, 31, and his agent were sued by Hawaii real estate investor Kevin J. Hayes Sr. and real estate broker Tomoko Matsumoto, who claimed that the baseball star and his representative caused them to be removed from a development project called Hapuna Estates, which is located on the Big Island's Hapuna Coast.

The plaintiffs claimed that they had worked on the development for more than a decade and that, in 2023, they had brought Ohtani in to help endorse the project and attract more high-net-worth buyers.

However, Hayes and Matsumoto claimed in their lawsuit that Ohtani and Balelo then conspired to force a business partner to cut ties with them,  effectively removing them from the very project that they said they conceived and built.

According to TMZ Sports, attorneys for both sides have now agreed to privately settle the lawsuit. It is unclear exactly what terms have been arranged between the parties. The settlement comes just days before the start of the Dodgers' MLB season on March 26, when they will face off against the Arizona Diamondbacks.

It is unclear what the settlement means for the future of the development, which the plaintiffs said they had been working on for 11 years by the time they inked a deal with Ohtani to promote the project.

They said in their lawsuit that they planned to leverage his celebrity status, particularly in the Japanese luxury vacation market, to generate buzz and attract high-net-worth buyers.

A press release touted Ohtani as the "first resident for the Kohala Coast project," before going on to reveal that the baseball star already picked out his lot, where he planned to build a luxury property where he could escape during the off-season.

"To me, Hawaii is a beautiful blend of Pacific Ocean cultures," Ohtani said in a statement at the time. "Here, I found my own paradise at Mauna Kea Resort: Two perfect beaches, two amazing golf courses, and so much more. I selected my homesite and am building my winter home here.

"This is a special place—a place I will soon call home."

However, in the 2025 filing, Ohtani and Balelo were accused of using "threats and baseless claims" to have Hayes and Matsumoto axed from the entire project.

"Balelo and [Ohtani], who were brought into the venture solely for [Ohtani's] promotional and branding value, exploited their celebrity leverage to destabilize and ultimately dismantle Plaintiffs' role in the project—for no reason other than their own financial self-interest," the lawsuit claimed.

It continued: "This case is about abuse of power. Defendants must be held accountable for their actions, not shielded by fame or behind-the-scenes agents acting with impunity. Plaintiffs bring this suit to expose Defendants’ misconduct and to ensure that the rules of contract, fair dealing, and accountability apply equally to all—celebrity or not."

It's unclear how much progress has been made on the construction of Ohtani's new dwelling in the development—a project that was reportedly going to cost him $17 million, according to Hawaii News Now.

According to the Wall Street Journal, Ohtani was responsible for the cost of the home's construction. However, it was not known whether he had paid anything for his prime parcel, which he secured as part of his endorsement deal with Hayes and Matsumoto.

It is unclear whether the MLB star's property has been completed; however, work was due to start in mid-2024.

Situated along the Kohala Coast, Hawaii's Hapuna Beach is consistently ranked among the world's best beaches. Its name, meaning "spring" or "pool" in Hawaiian, reflects its pristine environment—nearly a half-mile of powdery white sand, stunning blue waters, and year-round conditions ideal for swimming, bodyboarding, and sunbathing.

Hapuna Estates is a gated community within the Mauna Kea Resort, spread over 34 acres. Ohtani purchased property within The Vistas section of the neighborhood, where only 14 homesites are available.

The Hapuna Coast area has become a magnet for luxury homebuyers seeking both privacy and world-class amenities. Properties here often feature expansive ocean views, seamless indoor-outdoor living spaces, and custom designs that blend modern luxury with island-inspired architecture.

Given its appeal, the area has seen increased interest from global buyers, particularly from Asia, where Hawaii remains a top vacation and investment destination.

While the area will serve as Ohtani's home base during the winter—when the MLB is in its off-season—he also owns a residence in California, where he is likely to be based for some time, having signed a historic 10-year deal with the Dodgers worth $700 million in December 2023.

Not long after signing his record-breaking contract, Ohtani splashed out $7.85 million on a five-bedroom mansion in La Canada Flintridge, conducting the May 2024 deal through an LLC named after his beloved pet dog.

Reports surfaced soon after that he wanted to sell the home, after several local outlets in Ohtani's home country had leaked the address of his new abode. It resulted in photographers and journalists turning up on his doorstep, as well as fans knowing the exact location of the superstar athlete.

The two Japanese media outlets responsible for turning up at Ohtani's home, Fuji TV and Nippon TV, reportedly had their credentials revoked by the Dodgers, according to Essentially Sports.

Still, the security concerns in the wake of this information leak reportedly left Ohtani furious—and are also said to have made him determined to part ways with the property, before he had even moved in.

"Ohtani said that he could no longer live in the 1.2 billion yen mansion he had purchased, and indicated his intention to sell it without moving into his new home," a Yahoo Japan article, translated via Google, read.

Despite these reports, records indicate that Ohtani still owns the dwelling. It is unclear whether he is using it as his California residence.