Basketball legend and media personality Shaquille O’Neal has reached a $11 million settlement to resolve a class action lawsuit related to his promotion of the Astrals NFT project.
The lawsuit, which alleged that O’Neal misled investors by leveraging his celebrity status to market the NFTs, has been a focal point in discussions surrounding accountability for celebrity endorsements in the crypto and NFT industries.
The settlement also addresses claims in a separate lawsuit tied to FTX, the now-bankrupt cryptocurrency exchange. The resolution of both legal issues is pending court approval.
The Astrals NFT collection, comprising 10,000 digital collectibles created by artist Damien Guimoneau, was marketed as a gateway to a virtual world for socialization and gaming. O’Neal’s involvement and promotion were key to the project’s initial success. Many investors were drawn to the NFTs because of his endorsement.
However, as the project failed to maintain its value, the plaintiffs claimed O’Neal attempted to distance himself from the venture. In May, he was formally served with the lawsuit during an NBA game in Miami, and on August 16, a federal court recognized that the plaintiffs had adequately demonstrated his role in the project’s promotion and sale.
The settlement concludes a year-long legal battle, with O’Neal agreeing to pay $11 million to compensate affected investors and bring the case to a close.
O’Neal’s settlement coincides with a rebound in the NFT market. October 2024 marked a turnaround in NFT sales volumes, which climbed to $356 million, breaking a seven-month decline. Weekly sales in mid-November spiked by 94%, recording $181 million, as activity surged on Ethereum, Bitcoin, and Solana-based NFT platforms.
The case highlights the heightened legal scrutiny celebrities face when endorsing digital assets, emphasizing the risks for both influencers and investors in speculative markets.
Also Read: Shaquille O’Neal’s Astral NFT Case Partially Dismissed
