- Shaquille O’Neal has agreed to pay $11 million to settle a class-action lawsuit over his Astrals NFT project on Solana
- The lawsuit alleged that the Astrals NFTs and associated GLXY token were unregistered securities
- O’Neal had actively promoted the Astrals project before abandoning it in 2022, according to the lawsuit
Basketball legend Shaquille O’Neal has agreed to pay $11 million to settle a class-action lawsuit brought by investors in his troubled Astrals NFT project. The proposed settlement would compensate Astrals investors who claimed they purchased unregistered securities from O’Neal’s project.
Details of the Lawsuit
The lawsuit was filed on behalf of investors who purchased Astrals NFTs or the project’s governance token GLXY. It claimed O’Neal played an active role in promoting Astrals before abandoning the project in 2022. The lawsuit alleged O’Neal violated securities laws by touting the project’s ties to his celebrity status.
In August, a judge found O’Neal could be considered a seller under securities laws based on his financial motive and social media posts about Astrals. Plaintiffs said the $11 million settlement represents an “excellent recovery” given Astrals’ dire finances. The project said bankruptcy was likely in late October.
ONeal’s Promotion and Abandonment of Project
According to the lawsuit, O’Neal heavily promoted Astrals during musical performances as his DJ alter ego DJ Diesel. He allegedly hyped up the project’s ties to his fame on social media.
In October, O’Neal distanced himself from the project after promising “I’m not f***ing leaving” on Discord. The lawsuit said this was his last post on the platform before winding down his involvement.
Settlement and Moving Forward
Both sides agreed to the proposed $11 million settlement to compensate investors and cover legal fees, pending court approval. This would effectively end O’Neal’s legal troubles related to Astrals.
The settlement comes after multiple attempts to serve O’Neal with legal documents, including finally serving him outside his home. O’Neal previously tried to get the lawsuit dismissed by claiming the NFTs were meant for gamers, not investors.
Conclusion
The once-hyped Astrals project fizzled out amid O’Neal’s abandoned involvement and alleged securities violations. If approved, the $11 million settlement would provide investor relief and close the book on a celebrity crypto project gone wrong. O’Neal appears ready to move on from his troubled NFT venture.
