SNEAK PEEK
Shaquille O’Neal must defend claims in the Astral NFTs class-action lawsuit.
Judge rules that Astral NFTs and Galaxy tokens may be unregistered securities.
O’Neal’s alleged promotion of Astral NFTs is central to the ongoing legal dispute.
Shaquille O’Neal, the former NBA superstar, is embroiled in an ongoing legal dispute involving the promotion of Astral non-fungible tokens (NFTs). The case, which has been active for over a year, names O’Neal as a defendant and centres on allegations that the NFTs he endorsed online are unregistered securities.
A recent ruling by Miami federal court judge Federico Moreno has added new dimensions to the case, indicating that O’Neal will need to address some of the claims made against him.
In an Aug. 16 decision, Judge Moreno ruled on O’Neal’s motion to dismiss the lawsuit. The judge determined that the plaintiffs had adequately alleged that O’Neal acted as a “seller” in the Astral NFT project.
This designation is significant because it implies that O’Neal must answer for his role in promoting the NFTs. However, the judge dismissed the claim that O’Neal had control over the project, which limits the scope of the allegations against him.
The lawsuit, originally filed in May 2023, accuses O’Neal of promoting the Astrals and Galaxy tokens online, which the plaintiffs argue are securities under federal law. Judge Moreno’s order emphasized that the lawsuit had “sufficiently alleged” that the NFTs and tokens qualify as securities, thereby subjecting them to federal securities regulations.
The plaintiffs allege that O’Neal urged investors to invest in the project, citing his statements like “[h]op on the wave before it’s too late.” They claim that O’Neal’s promotion contributed to the initial success of the Astral NFTs, which had a floor price of approximately $90 at the time of their launch in March 2022. However, the lawsuit contends that O’Neal’s later departure from the project caused the value of the NFTs and the associated Galaxy token to plummet.
O’Neal has until Sept. 12 to respond to these claims. His legal team has argued that the lawsuit should be dismissed, asserting that O’Neal neither acted as a “seller” nor had control over the project. They also contend that the NFTs and tokens do not meet U.S. law’s legal definition of securities. As of now, the floor price of the Astrals NFT collection has significantly decreased, sitting at around $15.50, according to NFT marketplace Magic Eden.
The case against Shaquille O’Neal over the Astral NFTs continues to develop, with important legal determinations expected in the coming weeks. O’Neal’s defence against the allegations will likely play a crucial role in shaping the outcome of this high-profile lawsuit. As the deadline for his response approaches, the legal community and NFT enthusiasts alike are closely watching the proceedings.
The post Shaquille O’Neal Faces Legal Battle Over Alleged Promotion of Astral NFTs appeared first on Today NFT News.
