NBA legend and sports commentator Shaquille O’Neal has agreed to pay $11 million to settle a class-action lawsuit related to the Astrals NFT collection. The decision comes after a year of legal proceedings.
What Happened
Astrals is a collection of 10,000 digital items created by artist Damien Guimoneau. The collection offered buyers an immersive virtual world where they could interact and engage.
The key selling point of the collection was its promotion by celebrities, including O’Neal. Many investors were drawn to the basketball star’s endorsement and his association with the project. However, the value of the NFTs plummeted over time, resulting in significant financial losses for investors.
How the Lawsuit Unfolded
The lawsuit against O’Neal was filed in September 2023, with investors accusing him of promoting the collection to drive sales, despite his later attempts to distance himself from the project. On May 23, during an NBA game, O’Neal was served with legal papers at Miami’s Kaseya Center.
In August, a federal judge in Miami ruled that the allegations against O’Neal were valid. By November, the NBA legend signed a settlement agreement to resolve the case.
NFT Market on the Rise
The settlement coincides with a recovery in the NFT market. In October 2024, NFT sales volumes rose for the first time in seven months, reaching $356 million, an 18% increase from September.
In the week ending November 17, the market saw a 94% surge, with $181 million in sales. Major blockchains like Ethereum, Bitcoin, and Solana played a key role in this growth.
This case highlights the importance of conducting independent research before investing. Don’t rely solely on celebrity endorsements — dig deeper into projects to make informed decisions.
Previously, we reported on the controversy surrounding the meme coin JENNER, which resulted in $56,000 in investor losses.