Former NBA star player and sports commentator Shaquille O’Neal agreed to a class action settlement fund for Astrals non-fungible token (NFT) investors. The NBA legend also resolved claims in a separate FTX lawsuit and is awaiting court approval.
On May 23, O’Neal was served with the Astral NFT lawsuit during an NBA game at Miami’s Kaseya Center, formerly the FTX Arena. The class-action lawsuit involved his promotion of the Astrals NFT project.
On Aug. 16, a Miami federal court judge recognized that the plaintiffs had properly alleged that the former NBA player was a seller of the NFTs.
After a year of legal back and forth, O’Neal signed an $11 million settlement for promoting Astrals NFTs in exchange for dismissing the class-action suit.
Users bought Astral NFTs because of O’Neal promotions
The Astrals NFT collection consisted of 10,000 digital collectibles created by the artist Damien Guimoneau. The NFTs promoted a virtual world where users could socialize and play with others, including the basketball star.
The plaintiffs claimed that Astral assets were linked to O’Neal’s celebrity status, and many investors bought in because he promoted the NFTs.
The plaintiffs claimed O’Neal tried to distance himself from the project, though he said he hadn’t. The NFTs dropped in value and investors suffered financial losses. They filed a lawsuit against O’Neal in September 2023.
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NFTs continue sales volume momentum
O’Neal’s settlement comes as NFTs are recovering sales volumes. In October, NFT monthly sales volumes broke a seven-month downturn. NFT monthly sales volumes reached $356 million, recording an 18% increase compared to September, its lowest month in 2024. Transactions also showed a 42% increase month-on-month, reaching 7.2 million.
In the week leading to Nov. 17, NFT sales surged by 94%. The digital collectibles market recorded $181 million in sales, fueled by gains in Bitcoin and the broader crypto market. The surge in volume was due to increased trades in leading NFT blockchains like Ethereum, Bitcoin and Solana.
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