Dapper Labs, the company behind the NBA Top Shot Moments NFT collection, announced on Monday that it has settled a class-action lawsuit for $4 million. The lawsuit had accused Dapper Labs of improperly selling NFTs and violating securities laws. According to court documents, the settlement funds will be allocated to rightful claimants.
Was a Settlement Reached?
The settlement marks a significant milestone for Dapper Labs, reinforcing the company’s stance that NBA Top Shot Moments are not securities under federal law. This comes after a judge last year determined that these NFTs could be classified as securities, allowing the case to proceed.
The plaintiffs argued that Dapper Labs created an artificial market for its NFTs and profited by selling unregistered securities. With the NBA Top Shot collection amassing approximately $1.246 billion in volume since its inception, their claims about significant profits were substantial. The lawsuit was filed in 2021 in the U.S. District Court for the Southern District of New York.
CEO and Lawsuit Process
Dapper Labs’ co-founder and CEO, Roham Gharegozlou, who was also named as a defendant, expressed satisfaction with the settlement. He emphasized that the outcome is a crucial step for both Dapper Labs and the Flow blockchain community, which supports NBA Top Shot NFTs.
Since March 2022, four additional marketplaces have been established to display and sell NBA Top Shot Moments NFTs, providing collectors with more trading options, backed by the NBA and the NBA Players Association.
Key Takeaways
Here are some concrete and valuable inferences based on the details of the settlement:
- NBA Top Shot Moments NFTs are not considered securities under federal law, as per Dapper Labs.
- The $4 million settlement fund will be distributed to the lawsuit’s rightful claimants.
- Dapper Labs has expanded the trading platforms for NBA Top Shot Moments NFTs, enhancing market flexibility.
The resolution of this lawsuit is viewed as a pivotal moment for Dapper Labs and its NFT offerings. The company continues to emphasize the growth and flexibility of its marketplace, ensuring ongoing support from the NBA and related associations.