Former NBA sports analyst Shaquille O’Neal agreed to an $11M settlement to end the lawsuit related to the Astrals NFTs. The resolution signals the conclusion of a legal dispute regarding claims that O’Neal’s fame deceived investors.
The Lawsuit and Allegations
The lawsuit was a endorsement result of Shaquille O’Neal of the Astrals NFT collection, containing 10,000 digital items designed by artist Damien Guimoneau. Investors stated that the project gained increased interest with O’Neal’s participation, prompting many to invest due to his support.
Nevertheless, investors claimed that Shaquille O’Neal was pulling away from Astrals NFT after the project lost value, even though he had previously stated that he would stay engaged. This resulted in financial detriment for numerous individuals and the initiation of a class-action lawsuit in September of 2023.
In May, O’Neal was handed the lawsuit while playing an NBA game at the Kaseya Center, previously known as FTX Arena. In August, a judge in a federal court in Miami decided that the plaintiffs had provided enough evidence to demonstrate that Shaquille O’Neal had acted as the NFTs seller, compelling him to respond to the allegations.
NFT Sales on the Rebound
Shaquille O’Neal’s agreement aligns with a resurgence in the NFTs market. During October, NFT monthly sales rose to $356 million, showing an 18% growth compared to the previous month. Sales in the week before Nov. 17 increased by 94%, driven by transactions on the Ethereum, Bitcoin, and Solana blockchains.
Looking Ahead
After settling the lawsuit, O’Neal can now progress as the NFTs market keeps developing. His case acts as a warning about how celebrity endorsements can impact investment choices. At the same time, the revival of NFT sales indicates a renewed enthusiasm for digital collectibles, pointing towards a promising outlook for the market.
Comments