Shaquille O’Neal’s $11 Million Settlement in NFT Class-Action Suit
In a recent ruling, former NBA legend Shaquille O’Neal has received judicial approval for an $11 million settlement in a class-action lawsuit related to the Astrals non-fungible token (NFT) venture. The decision, handed down by Judge Federico Moreno of a federal court in Florida, marked a significant development for O’Neal and the group of plaintiffs led by Daniel Harper.
This ruling, issued on April 1 and publicly disclosed about a week later, establishes a fund accessible to individuals impacted by the NFT project, specifically those who acquired Astrals NFTs between May 2022 and mid-January of the current year, as well as purchasers of the accompanying GLXY tokens. In addition, the agreement allocates $2.9 million for legal fees and associated costs.
Background of the Lawsuit
The origins of this lawsuit trace back to May 2023 when O’Neal, known for his prolific NBA career, faced accusations regarding his role in the Astrals NFT project, which is based on the Solana blockchain. The class-action suit claimed that the sale of the NFTs constituted the unregistered offering of securities, with plaintiffs asserting that they experienced financial losses linked to O’Neal’s promotional activities. By August 2023, Judge Moreno acknowledged the assertion that O’Neal acted as a seller of these NFTs, leading to a preliminary settlement agreement reached in November.
Astrals NFT Project Details
The Astrals NFT collection, designed by Damien Guimoneau and launched in April 2022, comprises 10,000 distinct digital collectibles aimed at creating an interactive virtual environment for users, including an opportunity to engage with O’Neal himself. However, the project has faced severe setbacks, with OpenSea reporting no transactions or interest in the Astrals collection over the last two years.
The broader NFT market has also struggled significantly, posting just $27 million in sales as of early April 2023, a stark contrast to the over $2 billion weekly sales peak observed at the end of 2021, according to data from CryptoSlam.
“This ruling establishes a fund accessible to individuals impacted by the NFT project.”
