In a significant legal development, former NBA superstar Shaquille O’Neal has received the green light from a Florida federal court to proceed with a $11 million settlement concerning his involvement in the Astrals NFT collection. This court approval marks a pivotal moment for both O’Neal and the buyers who participated in the controversial NFT project.
On April 1, 2023, Judge Federico Moreno granted final approval of the class-action settlement, which aims to compensate buyers of the Astrals NFTs who were active from May 2022 to January 15, 2023. The settlement allocates a fund of up to $11 million to eligible class members, of which $2.9 million is designated for attorney fees and costs. The order indicates that buyers of the GLXY tokens up to mid-January also qualify for compensation.
The lawsuit initially filed against O’Neal back in May 2023 claimed that his promotion of the Astrals NFTs constituted the offer and sale of unregistered securities. Affected buyers asserted they suffered significant investment losses due to the promotional activities linked to O’Neal’s involvement.
As the proceedings unfolded, Judge Moreno acknowledged that O’Neal was considered a seller of the NFTs based on the allegations presented in the class suit. Following negotiations, O’Neal agreed to the settlement terms in November, seeking to resolve the issues amicably and swiftly.
However, the broader context of the NFT market adds another layer of complexity. The Astrals NFT collection, consisting of 10,000 unique 3D digital collectibles, was launched in April 2022 by artist Damien Guimoneau, creating a virtual world for buyers to engage with others, including O’Neal himself. Despite initial interest, NFT sales overall are experiencing a drastic downturn, with sales plummeting by 63% in Q1 2023.
As of early April 2023, NFT marketplace OpenSea reported no activity or sales from the Astrals collection for the past two years, a stark contrast to the booming market during late 2021 when NFT sales soared over $2 billion weekly. Reportedly, just $27 million in NFT sales have been recorded, indicating a significant decline in market activity.
In summary, the court’s approval of Shaquille O’Neal’s settlement related to the Astrals NFT project not only provides a resolution for the affected buyers but also highlights ongoing challenges in the NFT landscape.
