Dapper Labs Resolves NFT Lawsuit

In a recent announcement by Dapper Labs, the team responsible for the renowned NBA Top Shot Moments NFT collection disclosed the resolution of a class-action lawsuit alleging improper NFT sales and securities law violations.

Settlement Details:

A court document released by Dapper Labs confirmed the settlement amount of $4 million. The funds are designated to a settlement pool for the rightful claimants' benefit.

The organization reflected on the settlement:

The resolution of the Friel vs. Dapper Labs lawsuit underscores Dapper Labs' stance that NBA Top Shot Moments do not fall under federal securities regulations.

This settlement marks a pivotal moment, notably after a previous ruling classified NBA Top Shot NFTs as securities. The case, Friel vs. Dapper Labs, originated in the U.S. District Court for the Southern District of New York.

CEO's Involvement:

Dapper Labs' co-founder and CEO, Roham Gharegozlou, was personally named in the lawsuit. The resolution of the lawsuit also signaled a win for him. Gharegozlou expressed satisfaction with the settlement:

The conclusion reached today is a significant milestone for Dapper Labs and the Flow community.

NBA Top Shot NFTs, developed on the Flow blockchain by Dapper Labs, have generated substantial revenue, aligning with the plaintiffs' allegations of unregistered security sales.

Market Expansions:

Dapper Labs announced the establishment of four new marketplaces post-March 2022, authorized to showcase and trade NBA Top Shot Moments NFTs. This extension intends to provide collectors enhanced trading opportunities and experiences supported by the NBA and the NBA Players Association.