Astrals NFT Lawsuit Ends with $11M Payout from Shaquille O’Neal
Former NBA star Shaquille O’Neal has agreed to an $11 million settlement to resolve a class-action lawsuit involving his promotion of the Astrals NFT project. The settlement, pending final court approval, aims to compensate investors who purchased Astrals NFTs and the associated GLXY tokens, which were alleged to be unregistered securities.
The lawsuit, initiated in May 2023, claimed that O’Neal actively promoted the Astrals NFT collection, which featured 10,000 Solana-based avatars, and its governance token, GLXY. Plaintiffs alleged that his endorsements led them to invest in what they later described as unregistered securities. In August 2024, a Florida federal judge ruled that the plaintiffs had sufficiently alleged that O’Neal acted as a seller of these NFTs.
Settlement Details
Under the terms of the proposed settlement:
Compensation Fund: An $11 million fund will be established to compensate eligible buyers of Astrals NFTs and GLXY tokens.
Legal Fees: Approximately $2.9 million from the settlement fund is allocated for attorneys' fees.
Eligibility: Individuals who purchased Astrals NFTs or GLXY tokens between May 2022 and January 15, 2024, are eligible to file claims.
Claim Submission: Claimants must provide proof of purchase, including transaction details and wallet addresses. The deadline to file a claim is April 17, 2025.
Implications for the NFT Market
This settlement highlights the increasing legal scrutiny surrounding celebrity endorsements of cryptocurrency and NFT projects. It serves as a cautionary tale for public figures promoting digital assets, emphasizing the potential legal ramifications of such endorsements.
Next Steps for Investors
Eligible investors should prepare the necessary documentation to submit their claims before the April 17, 2025, deadline. Detailed instructions and claim forms are available on the official settlement website.
This case underscores the importance of due diligence for both investors and celebrities involved in the rapidly evolving digital asset landscape.
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