Former NBA superstar Shaquille O’Neal has received final court approval to resolve a class-action lawsuit with buyers of Astrals non-fungible tokens (NFTs) for a sum of $11 million.
A federal judge in Florida, Federico Moreno, approved the settlement between O’Neal and the class group led by Daniel Harper in an order issued on April 1, which became public on April 8.
This agreement established a fund of up to $11 million for class members who qualify, alongside $2.9 million allocated for attorney fees and costs. Those who purchased Astrals NFTs from May 2022 to January 15, as well as buyers of the project’s native GLXY tokens until mid-January, are eligible.
“The fees sought by the lead counsel for the class have been evaluated and deemed fair and reasonable by the plaintiffs,” Moreno’s order stated.
O’Neal faced the lawsuit in May 2023, concerning his role in founding and promoting the Solana-based Astrals NFT project, which the suit claimed involved the “offer and sale of unregistered securities.”
The class group asserted they bought Astrals NFTs and “incurred investment losses” due to O’Neal’s actions in promoting the venture.
In August, Judge Moreno acknowledged that the class suit claimed the former NBA player was a seller of the NFTs. O’Neal agreed to the settlement in November.
Screenshot from the court order on the final settlement.
Decline in NFT sales
The Astrals NFT collection featured 10,000 distinct 3D digital collectibles created in April 2022 by artist Damien Guimoneau, as part of a Solana-based project that envisioned a virtual world where users could interact and engage in activities, including with the basketball player.
Related: NFT sales decline by 63% in Q1, while Pudgy Penguins and Doodles go against the trend
There has been no activity or sales from the collection for the past two years, according to the NFT marketplace OpenSea.
Overall, NFT sales remain deep in a bear market, with only $27 million sold as of April 7, a significant drop from over $2 billion weekly at the end of 2021, as reported by CryptoSlam.
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