This move surprises no one.
A little while ago, ESPN's Adam Schefter tweeted this to confirm Lito's release:
Jets have released CB Lito Sheppard and he is now a free agent.
That $10 million roster bonus is just too hefty of a price-tag in this uncapped offseason. The money would be better spent elsewhere (OLB/DE/CB). And, depending on what happens with TJ & Leon (RB).
I do feel bad for him in one regard. In what was probably the only time all season I have challenged Rex regarding one of his decisions, the last-minute move to start the youngin Lowery over the veteran in the AFC Championship game proved to be an awful move.
Once Strickland left due to injury, Dwight got beat near every play and was a big part in Peyton staging his comeback. They literally threw at him EVERY down running a barrage of vertical routes.
Still, the fact remains, Lito did not earn his $10 million bonus. I do wish him luck on other (non-AFC East) squads!