Shaquille O’Neal settles $11M lawsuit over Astrals NFTs

Shaquille O’Neal has agreed to an $11 million settlement to resolve a class-action lawsuit brought by investors in the Astrals NFT project.

The lawsuit accused the former NBA star of promoting unregistered securities tied to the Solana-based (CRYPTO:SOL) NFTs and their governance token, GLXY.

The settlement, approved by Florida federal judge Federico Moreno on April 1, establishes a fund for eligible investors who purchased Astrals NFTs or GLXY tokens between May 2022 and January 2023.

It also allocates $2.9 million for attorney fees and costs.

The plaintiffs claimed O’Neal’s celebrity status played a significant role in attracting buyers to the Astrals project, which featured 10,000 unique digital collectibles created by artist Damien Guimoneau.

The NFTs were marketed as part of a virtual world where users could interact and play alongside figures like O’Neal.

However, the project faced criticism after its market value plummeted, leaving many investors with financial losses.

Plaintiffs alleged that O’Neal attempted to distance himself from the project despite his prominent role in promoting it.

“Investors suffered losses due to Mr. O’Neal’s conduct,” the lawsuit stated.

Judge Moreno ruled in August 2023 that the NFTs and tokens resembled securities under U.S. law, allowing the case to proceed.

By November, O’Neal agreed to settle, effectively bringing an end to the legal dispute.

Lead counsel Adam Moskowitz commended both the court and O’Neal for facilitating the resolution.

“In this rapidly evolving crypto landscape, federal judges and willing participants are key to achieving settlements,” Moskowitz stated.

The settlement is part of a broader trend of legal challenges faced by celebrities involved in promoting crypto projects.

O’Neal was also named in lawsuits related to FTX’s collapse in 2022 but has since resolved those claims.

Astrals NFTs have seen no activity on marketplaces like OpenSea for over two years, reflecting broader struggles in the NFT sector.

As of April 2025, weekly NFT sales remain far below their peak levels from late 2021.