PANews reported on November 20 that according to The Block, NBA legend Shaquille O'Neal agreed to pay $11 million to settle a class action lawsuit caused by the promotion of the Astrals NFT project. The plaintiff accused O'Neal of helping to promote unregistered securities.
The case involves 10,000 Astrals NFTs and the associated “Galaxy” governance token built on the Solana network, with U.S. District Judge Federico Moreno in Miami ruling that the assets may be considered securities and O’Neill was identified as a possible “seller” due to his role as a “spokesperson” for the project.
It is reported that O'Neal promoted the project through personal influence at the peak of the NFT market, but the market fell sharply after the collapse of the FTX exchange in November 2022. The plaintiff claimed that O'Neal then abandoned the project. He also faced legal action with celebrities such as Tom Brady and Larry David due to his involvement in the FTX endorsement case. If the judge approves the settlement amount, part of the funds will be used to compensate investors for losses and pay attorney fees.
