Shaq Faces Lawsuits Over FTX, Astrals Promotions

The Plaintiffs claim they "invested" in Astrals and "suffered investment losses" as a result of O'Neal's "conduct."

Shaq Faces Lawsuits Over FTX, Astrals Promotions
Shaq Faces Lawsuits Over FTX, Astrals Promotions

Ex-basketball star Shaquille O’Neal has had yet another run-in with process servers, who have been trying for months to serve him with a class-action lawsuit for allegedly promoting FTX.

This time, however, a new lawsuit has been added to the mix, alleging that he founded and promoted a Solana-based nonfungible token project called Astrals, which the case describes as “unregistered securities.”

The Wall Street Journal reports that process servers reached O’Neal on May 23 while he was commenting on a playoff basketball game at the former FTX Arena, now renamed the Kaseya Center.

Adam Moskowitz, the attorney who filed both lawsuits, stated that O’Neal was served with the FTX class-action lawsuit and a new class-action lawsuit about his alleged promotion of the Astrals project.

Previously, O’Neal asserted in court that process servers for the FTX lawsuit “tossed” the papers in front of his moving vehicle, and he abandoned them on the road. His attorneys argued that such service was “inadequate.”

According to federal regulations, a lawsuit is only considered served if “state law for serving a summons is followed.”

The case previously served on O’Neal originated in Georgia and was not “made by an authorized person,” according to his attorneys.

Moskowitz asserted that the process server purchased tickets to the May 23 Eastern Conference finals game at the arena where O’Neal was commentating from a platform for the recent suit service.

During O’Neal’s presence on the platform, the server reportedly delivered the complaint. Moskowitz asserted that O’Neal had the server removed from the arena later.

The FTX lawsuit focuses on alleged celebrity endorsements of the bankrupt exchange. Alongside O’Neal are basketball player Steph Curry, former NFL player Tom Brady, comedian Larry David, and FTX founder Sam Bankman-Fried.

O’Neal and Curry appeared to be able to joke on television about the class-action lawsuit. Before the game, a trophy was presented to Curry, and O’Neal addressed the basketball star.

“Thanks for getting me into trouble,” O’Neal joked to Curry, who was laughing. “Don’t say anything; be quiet,” he added before a co-host quickly changed the subject.

The second class action lawsuit served on O’Neal relates to his alleged founding and promotion of the Solana-based Astrals NFT project, which the complaint alleges was an “offer and sale of unregistered securities.”

The lawsuit asserts that the NFTs were “investment contracts” under the Howey test, with the lawyers arguing that purchasers “partook in a common enterprise” and had “profit expectations.”

The only defendant named in the complaint was O’Neal. Plaintiffs claim they “invested” in Astrals and “suffered investment losses” as a result of O’Neal’s “conduct.”

The lawsuit also questioned “whether he is still involved in the Astrals Project,” claiming that O’Neal has not posted on the Discord server since January.

The plaintiffs seek various monetary damages and relief for their alleged losses from purchasing the NFTs.