Dapper Labs has entered a $4 million agreement to settle an investor lawsuit that claimed it sold NBA Top Shot Moments NFTs as unregistered securities.
Dapper Labs’ $4 million settlement agreement to end a class-action lawsuit against the firm reaffirms NBA Top Shot nonfungible tokens (NFTs) are not securities, according to CEO Roham Gharegozlou.
The June 3 New York District Court filing shows Dapper Labs reached a settlement agreement with a class group of investors who had sued the firm in 2021, alleging it sold unregistered securities through its NBA Top Shot Moments NFTs.
In a June 4 X post, Gharegozlou claimed the case’s legal discovery found the NFTs were on “a decentralized public network,” which meant they “are not securities in the same way trading cards are not securities.”
