Shaquille O’Neal settles $11M lawsuit over Astrals NFTs, resolving claims tied to his endorsements as NFT sales volumes surge in the crypto market.
A class-action lawsuit was dismissed in exchange for Shaquille O’Neal signing a $11 million settlement. Shaquille O’Neal, a former NBA player and sports analyst, has consented to a class action settlement fund for investors in Astrals non-fungible tokens (NFTs). After settling allegations in a different FTX lawsuit, the NBA veteran awaits court permission.
During an NBA game at the Kaseya Center, previously the FTX Arena, on May 23, O’Neal received notice of the Astral NFT lawsuit. The celebrity’s endorsement of the Astrals NFT project was central to the class-action case.
A Miami federal court judge acknowledged on August 16 that the plaintiffs had a valid claim that the former NBA player was selling the NFTs. This implied that the sports analyst had to explain.
O’Neal signed a $11 million settlement for advertising Astrals NFTs following a year of back and forth. The class-action lawsuit was dismissed in exchange for the NBA analyst accepting the settlement.
Users purchased Astral NFTs as a result of Shaquille O’Neal advertising.
10,000 digital collectibles made by artist Damien Guimoneau made up the Astrals NFT collection. Users could interact and play with others, including the basketball star, in the NFTs’ virtual world.
According to the plaintiffs, O’Neal’s celebrity reputation was connected to Astral assets, and he encouraged many investors to purchase the NFTs. The plaintiffs thought O’Neal was attempting to disassociate himself from the project, even though he claimed he wasn’t quitting it.
Investors lost money due to the NFTs’ subsequent decline in value. As a result, O’Neal was sued by the NFT investors in September 2023.
NFTs maintain the momentum of sales volume.
O’Neal’s settlement coincides with NFTs’ sales volume recovery. NFT monthly sales volumes ended a seven-month decline in October. NFT’s monthly sales volumes increased by 18% to $356 million from September, the company’s lowest month in 2024. Additionally, transactions increased by 42% month over month to 7.2 million.
The week before November 17 saw a 94% increase in NFT sales. Gains in Bitcoin and the larger cryptocurrency market drove $181 million in sales for the digital collectibles industry. Increased trading on popular NFT blockchains, including Ethereum, Bitcoin, and Solana, was the cause of the volume spike.