In exchange for the dismissal of a class-action lawsuit, Shaquille O’Neal executed a $11 million settlement.
Shaquille O’Neal, a former NBA star player and sports commentator, has consented to a class action settlement fund for Astrals non-fungible token (NFT) investors.
During an NBA game at Miami’s Kaseya Center, which was previously known as the FTX Arena, on May 23, O’Neal was served with the Astral NFT lawsuit. His promotion of the Astrals NFT initiative was the subject of the class-action lawsuit.
On August 16, a federal court judge in Miami acknowledged that the plaintiffs had accurately claimed that the former NBA player was a seller of the NFTs.
O’Neal signed a $11 million settlement for promoting Astrals NFTs in exchange for dissolving the class-action suit after a year of legal back and forth.
The artist Damien Guimoneau created 10,000 digital mementos for the Astrals NFT collection. The NFTs facilitated the creation of a virtual environment in which users could engage in social activities and games with others, including the basketball player.
The plaintiffs contended that O’Neal’s celebrity status was associated with Astral assets, and a significant number of investors invested in the company as a result of his promotion of the NFTs.
O’Neal denied that he had attempted to dissociate himself from the initiative, despite the plaintiffs’ claims. The value of the NFTs decreased, resulting in financial losses for investors. In September 2023, they initiated legal proceedings against O’Neal.
O’Neal’s resolution occurs amid the resurgence of NFT sales volumes. In October, the monthly sales volumes of NFTs reversed a seven-month decline. In comparison to September, the lowest month of 2024, NFT’s monthly sales volumes increased by 18% to $356 million. Additionally, the number of transactions increased by 42% month over month, reaching 7.2 million.
In the week preceding November 17, there was a 94% increase in the sales of NFTs. Bitcoin and the broader crypto market saw significant gains, resulting in $181 million in sales in the digital collectibles market. The surge in volume was a result of an increase in transactions in prominent NFT blockchains, including Solana, Bitcoin, and Ethereum.
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