Basketball legend Shaquille O’Neal has received a partial victory in his ongoing legal battle over the Astral NFT project. While a Florida court dismissed allegations that he had wider control over the project, his involvement as a “seller” has been confirmed.
The ruling marks a significant development in the class action lawsuit against O’Neal and the Astral project, which began in May 2023. Investors had alleged that the project sold unregistered securities and that O’Neal had misled them about his role in the venture.
The court’s decision is a mixed bag for O’Neal. On the one hand, he has successfully defended himself against claims that he was a “control person” in the Astrals project. This means that he cannot be held liable for the project’s alleged securities violations.
However, the court has found that he did play a role as a “seller” by promoting the project to his followers and encouraging them to invest.
This finding could have serious implications for O’Neal. The court has not yet ruled on whether Astrals NFTs and Galaxy tokens are considered securities. If they are found to be securities, O’Neal could face legal consequences for his role in promoting them.
The case is still ongoing, and O’Neal and the Astral project are required to respond to the remaining allegations by September 12, 2024. The outcome of the case could have a significant impact on the legal landscape surrounding celebrity endorsements in the cryptocurrency space.
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