- The court has allowed Shaquille O’Neal to settle a lawsuit involving Astrals NFT
- O’Neal had indicated an interest in settling the case for $11 million
- The court said the $2.9 million in legal fees awarded to the plaintiffs’ lawyers is “fair and reasonable”
A Florida court has approved former NBA star Shaquille O’Neal’s request to settle a lawsuit involving Astrals NFT for $11 million. The court said the $2.9 million in legal fees awarded to the plaintiffs’ lawyers is “fair and reasonable.” The settlement will see the creation of an $11 million fund and the money distributed to eligible Astrals NFT investors, bringing an end to a legal battle that started in May 2023.
NFT and GLXY Token Investors Eligible
The court said investors who bought the Astrals NFTs from mid-2022 to January this year are eligible to claim a portion of the settlement amount. The amount also covers those who invested in Astrals’ native token Galaxy (GLXY) within the same period. GLXY’s value has dropped by almost 100%.
Astrals NFT investors went to court in 2023 claiming they suffered significant losses when the NBA star abandoned the project. They also claimed that the NFTs were securities and O’Neal promoted unregistered securities.
In August last year, the court offered O’Neal a temporary reprieve by dismissing claims that he was among the project’s main team. The court described the ex-NBA star as a “seller” and maintained the view that the Astrals NFTs are securities.
Astrals Joins Others
In November 2024, O’Neal agreed to settle the lawsuit for $11 million and end the case. The former NBA star’s case resembles others in the web3 space, where NFT projects and promoters choose to settle lawsuits brought against them by investors or regulatory agencies.
Some NFT projects that have gone the settlement way include Stoner Cats and NBA Top Shot’s creator Dapper Labs.
With Astrals NFT investors winning the case, it’s to be seen whether celebrities will continue promoting web3 projects when they aren’t part of a project’s core team.
