Shaquille O’Neal Agrees to $11M-Settlement for Astrals NFT Lawsuit
NBA legend and sports commentator Shaquille O’Neal has agreed to an $11 million settlement to resolve a class-action lawsuit arising from Astrals NFTs. The settlement dismisses claims from investors who claimed financial losses due to O’Neal’s promotion of the digital collectibles.
Lawsuit Background
O’Neal was served with the suit last May at an NBA game inside the Kaseya Center in Miami. The plaintiffs alleged that the former NBA star sold them connected to the Astrals collection-a collection of 10,000 digital assets created by artist Damien Guimoneau.
The class-action suit, filed in September 2023, claimed that many investors purchased Astral NFTs due to O’Neal’s endorsement. However, when them values started bottoming out, investors began to take losses. Although O’Neal at one point said he was distancing himself from the project, a Miami judge in August ruled that the plaintiffs’ claims were viable.
Astrals NFT Project Tied to O’Neal’s Celebrity
The Astrals collection was a virtual world for socializing and gaming. O’Neal’s involvement was one of the main pitches, and plaintiffs have alleged that his celebrity status had a major impact on investment decisions.
After months of legal wrangling, O’Neal’s $11 million settlement looks to compensate affected investors and resolve the case without further litigation.
NFT Market Rebounds
This settlement comes amidst a revival in them sales. For October 2024, the monthly NFT sales volume increased 18% to $356 million, breaking a seven-month decline. Transactions surged 42% to hit 7.2 million.
Them sales jumped 94% in the week leading up to Nov. 17, with a total of $181 million in sales. Gains in the wider crypto market, particularly Bitcoin, coupled with increased activity on major blockchains such as Ethereum, Bitcoin, and Solana, have powered the resurgence.
A Pioneering Case for Celebrity NFT Promotion
O’Neal’s settlement underlines the risk of celebrity endorsement in the world of non-fungible tokens as jaded investors increasingly hold promoters responsible for financial losses.
