Dapper Labs Settles NBA Top Shot Lawsuit For $4 Million

Bittime – Dapper Labs, the company behind thepopular NBA Top Shot Moments NFT collection, has reached a settlement in a class-action lawsuit. The lawsuit, filed in 2021, accused Dapper Labs of violating securities laws by selling unregistered securities in the form of NBA Top Shot Moments.

Dapper Labs Terms of Agreement

According to court documents obtained, Dapper Labs agreed to pay $4 million to settle the lawsuit. This amount will be distributed to eligible claimants through a special settlement fund.

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Dapper Labs attitude

Despite acknowledging the existence of the deal, Dapper Labs stands by its stance that NBA Top Shot Moments are not securities under federal law. 

The company issued a statement reaffirming this stance: "The settlement in Friel v. Dapper Labs further strengthens Dapper Labs' view that NBA Top Shot Moments are not securities under federal law."

Plaintiff's Allegations 

The lawsuit, filed by a group of plaintiffs represented by Friel, alleges that Dapper Labs made significant profits by selling unregistered securities. The plaintiffs further claim that the company artificially inflated the market for NBA Top Shot Moments by manipulating prices.

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Implications for the NFT Market

The deal, while not a formal decision on the legal classification of NBA Top Shot Moments, may have broader implications for the NFT market. This highlights the ongoing debate around NFT regulation and the potential application of securities laws to digital collectibles.

Conclusion

This agreement paves the way for the resolution of this particular lawsuit. However, broader legal questions about NFTs and securities remain open. As the NFT market continues to develop, regulators and courts will likely continue to grapple with the proper classification and handling of these digital assets.

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