Sports commentator and former NBA star Shaquille O’Neal has agreed to an $11 million settlement to resolve a class action lawsuit over his promotion of Astrals non-fungible tokens (NFTs).
The settlement, awaiting court approval, also addresses separate claims linked to the collapse of cryptocurrency exchange FTX.
The lawsuit was filed after investors alleged they suffered financial losses tied to Astrals NFTs, a collection of 10,000 digital collectibles promoted by O’Neal.
Plaintiffs argued that his celebrity endorsement heavily influenced their decisions to invest in the project.
According to court filings, O’Neal was served with the lawsuit in May 2023 during an NBA game at Miami’s Kaseya Center.
Allegations Of Misleading Promotion
The Astrals NFT project, developed by artist Damien Guimoneau, promised a virtual world for socialization and gaming, featuring O’Neal’s active participation.
Investors claimed they were drawn to the project largely due to O’Neal’s involvement, including promotional posts in the Astrals’ Discord community.
A GIF he posted, referencing The Wolf of Wall Street and captioned “I’m not f***ing leaving,” became a focal point in the case.
Plaintiffs alleged this was intended to reassure investors, even as the project’s value plummeted following the broader collapse of the crypto market.
While the court dismissed claims that O’Neal was a “control person” in the project, it upheld allegations that he acted as a “seller” under federal securities laws due to his active role in promoting the NFTs.
O’Neal has not made a public statement about the settlement but has characterized himself as a victim of both the Astrals and FTX collapses.
