Shaquille O’Neal Has Agreed to Settle $11M with Investors

Shaquille O’Neal has agreed to settle $11M with investors to resolve claims that he failed to disclose that Astrals NFT and token sales were unregistered securities.

This case, titled "Melendez v. Shaq (Trust)”, case no. 1:23-cv-21912, in the U.S. District Court for the Southern District of Florida, concerns claims that Shaquille O'Neal and other named defendants promoted and sold Astrals NFTs and tokens as unregistered securities.

The case arose from the persistent claims circulating online that several celebrities, including Shaquille O'Neal, were involved in selling NFTs as unregistered securities.

Earlier this year, a group of investors filed a class action lawsuit against O'Neal and others, alleging that they failed to disclose material facts about the token offering and failed to register the offering with the SEC. The lawsuit also claimed that O'Neal and the other defendants made false and misleading statements about the NFTs and tokens to induce investors to purchase them.

The complaint specifically mentioned that O'Neal touted the "unique utility" of the Astrals NFTs, claiming they granted access to exclusive content, events, and a metaverse gaming project. However, according to the complaint, O'Neal and the other defendants never disclosed that the utility was limited and ultimately worthless.

The investors also alleged that O'Neal and the other defendants promoted the Galaxy Tokens (GLXY) in a deceptive manner, highlighting their connection to the Astrals NFTs to create the impression that they were part of the same offering. This, they argued, was crucial because the GLXY tokens were being sold in violation of federal securities law.

The lawsuit further alleged that O'Neal and the other defendants engaged in a scheme to defraud investors by making false and misleading statements about the NFTs and tokens, and that they failed to disclose material facts about the offering.

Following the lawsuit, O'Neal and the other defendants moved to dismiss the complaint, arguing that the investors' claims were time-barred and that the NFTs and tokens were not subject to federal securities law.

After reviewing the case, the court granted the motion to dismiss in part and denied it in part. The court dismissed the claims against O'Neal and some of the other defendants, finding that the investors' claims were time-barred. However, the court refused to dismiss the claims against certain of the named defendants and allowed the case to proceed in part.

The case has since been settled, and investors who purchased Astrals NFTs or Galaxy Tokens during the relevant period may be eligible for compensation from the settlement.

The case name is Melendez v. Shaq (Trust), case no. 1:23-cv-21912, in the U.S. District Court for the Southern District of Florida. The law firm filing the case is Baum Hedlund.

The claims in the case are that the defendants, including Shaquille O'Neal, sold Astrals NFT and tokens as unregistered securities and failed to disclose material facts about the offering. The investors who purchased the NFTs or tokens are now seeking compensation for their losses.

The time period for purchasing Astrals NFTs is May 24, 2022, to January 14, 2025, and for purchasing Galaxy Tokens (GLXY) is before January 14, 2025.

According to the law firm, the claims will be distributed among the investors who file a claim. The firm recommends that investors submit their claim early to maximize their chances of receiving a larger payout.

The last day to exclude your name from the claims is November 16, 2023.

Investors can learn more about the settlement and how to file a claim on the law firm’s website.