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.
In a June 4 X post, Gharegozlou shared that the company had reached a settlement agreement with a class group of investors who had alleged the firm sold unregistered securities.
Gharegozlou noted that the class group’s legal discovery found that the NBA Top Shot Moments NFTs that Dapper made were on “a decentralized public network,” which meant the tokens “are not securities in the same way trading cards are not securities.”
