- Shaquille O’Neal has agreed to compensate Astrals NFT investors
- O’Neal signed an $11 million settlement seeking to close the case brought against him by the investors
- The investors argued that they suffered losses when the former NBA star abandoned the NFT project
NBA legend Shaquille O’Neal has signed an $11 million settlement to compensate Astrals NFT investors and close the subsequent class action suit. Although the settlement is pending court approval, it will cater for the losses the investors incurred when the NBA star left the project and the legal fees associated with the suit. If approved by the court, the settlement will end a court case that has been active for roughly a year, something the investor’s lawyer said was a way for the NBA player to “step up to help the […] victims.”
O’Neal Tried to Dismiss the Lawsuit
Disgruntled investors argued that O’Neal used his popularity to publicize the project even though he wasn’t its creator.
The investors welcomed the settlement option and are now waiting for a nod from the court. Last month, the NFT project had told its community that it may wind down because the lawsuit was draining its financial reserves.
O’Neal had in the past tried to get the lawsuit dismissed by arguing that the investors had no share of the project’s funds. Astrals’ social media presence has dropped drastically with the last post being in December 2023.
NFT Projects Are Also Choosing to Settle Lawsuits
O’Neal’s proposed settlement comes a year after the Stoner Cats NFT project agreed to a $1 million settlement with the SEC for dealing in unregistered securities. Dapper Labs, the web3 firm behind the NBA Top Shot project has also in the past gone the settlement way.
In July, a U.S. judge denied DraftKings’ motion to dismiss a class action lawsuit involving its NFTs.
With O’Neal agreeing to compensate Astrals NFT investors and the investors happy with the proposed amount, it’s likely the court will okay the settlement and close the case.
