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Shaquille O’Neal agrees to $11M NFT lawsuit settlement

Shaquille O’Neal agrees to $11M NFT lawsuit settlement

GrafaGrafa2024/11/20 13:37
By:Liezl Gambe

Shaquille O’Neal, former NBA star and sports commentator, has reached an $11 million settlement to resolve a class-action lawsuit involving his promotion of the Astrals non-fungible token (NFT) project.

The settlement comes after a year of legal proceedings and awaits court approval.

O’Neal was served with the lawsuit during an NBA game at Miami’s Kaseya Center in May 2024.

The lawsuit claimed that O’Neal’s endorsements influenced many investors to purchase Astrals NFTs.

In August, a Miami federal court confirmed that the plaintiffs had adequately alleged that O’Neal acted as a seller of the NFTs.

The Astrals NFT collection featured 10,000 digital collectibles created by artist Damien Guimoneau and was promoted as a platform for users to engage in a virtual world, including interactions with O’Neal.

Plaintiffs argued that the project’s link to O’Neal’s celebrity status encouraged their investments.

They also alleged that O’Neal had attempted to distance himself from the project, although he denied these claims.

The lawsuit was initiated after the value of the NFTs dropped, resulting in financial losses for investors who bought the digital assets.

Investors brought the case against O’Neal in September 2023, seeking compensation for their losses.

This settlement coincides with a broader trend in the NFT market, which has shown signs of recovery.

October marked a turnaround in NFT sales, reaching $356 million in monthly volumes, an 18% increase from September.

Transactions also rose by 42%, totaling 7.2 million.

Leading up to November 17, the NFT market experienced a significant boost, with sales jumping by 94% to $181 million.

This surge was driven by increased trading activity on major blockchains, including Ethereum (CRYPTO:ETH), Bitcoin (CRYPTO:BTC), and Solana (CRYPTO:SOL), amid gains in the broader cryptocurrency market.

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