Popular NBA NFT collection solves the eagerly awaited case!

Dapper Labs, the creator of the once popular NBA Top Shot Moments NFT collection, announced that it has reached a decision in the class action lawsuit alleging violations of securities laws.

According to a court document provided by Dapper Labs, the company has agreed to settle the lawsuit for 4 million dollars. The document also states that the money will be allocated to a settlement fund to be offered to eligible claimants.

Dapper Labs stated that, 'The settlement in the Friel vs. Dapper Labs case further strengthens Dapper Labs' belief that NBA Top Shot Moments are not securities under federal law.'

When Dapper Labs successfully resolved the case, it constituted a slightly different situation considering that the judge overseeing the case last year found that NBA Top Shot Moments NFTs met the necessary conditions to be considered securities, and therefore allowed the Friel vs. Dapper Labs case to continue.

The plaintiffs in the lawsuit alleged that Dapper Labs made hundreds of millions of dollars in profits by selling unregistered securities while artificially "supporting the market" for its NFT. They also accused Dapper Labs of "preventing users from withdrawing their funds for months" According to a report in The Verge, the lawsuit was first filed in the U.S. District Court for the Southern District of New York in 2021.

CEO was right

Roham Gharegozlou, the co-founder and CEO of Dapper Labs, was vindicated by the settlement, which was named as a co-defendant in the lawsuit along with his company. "We are pleased with the outcome of today's agreement, which marks a significant step forward for Dapper Labs and the Flow community," he said in a statement

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