Shaquille O’Neal, the legendary NBA player and popular sports commentator, has agreed to an $11 million settlement to resolve a class-action lawsuit involving Astrals non-fungible tokens (NFTs).
This resolution marks the end of a legal dispute in which O’Neal was accused of promoting the NFT project to investors who later faced losses. Additionally, O’Neal has resolved claims related to a separate lawsuit involving FTX, though both settlements await final court approval.
The Astrals NFT controversy began on May 23, 2023, when O’Neal was served with legal papers during an NBA game at the Kaseya Center in Miami—a venue previously named the FTX Arena. This class-action suit accused the basketball star of actively endorsing the Astrals NFT collection, which included 10,000 unique digital items created by artist Damien Guimoneau.
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By mid-August, a federal judge in Miami determined that the plaintiffs had shown O’Neal’s role as a seller of the NFTs. The plaintiffs alleged that O’Neal’s celebrity status played a role in influencing their decision to invest, as his endorsements were viewed as a stamp of credibility for the Astrals project. They further stated:
O'Neal knew or should have known of potential concerns about regulatory issues concerning the sale of unregistered crypto securities, but nevertheless extensively promoted the Astrals Project to his large following on a multitude of social media platforms.
Despite O’Neal’s assertions that he had not attempted to distance himself from the NFTs, investors argued that his involvement had diminished over time. As the value of the digital assets plummeted, those who suffered financial losses filed a lawsuit in September 2023.
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