Dapper Labs Settles $4 Million NBA Top Shot NFT Lawsuit

By: Eliza Bennet

Dapper Labs, the company behind NBA Top Shot, has agreed to a $4 million settlement in response to a class action lawsuit filed in 2021. The lawsuit alleged that the company and its co-founder and CEO, Roham Gharegozlou, violated federal securities laws. Investors claimed that the NFTs (non-fungible tokens) were being marketed as securities without proper registration.

Since the filing of the lawsuit, Dapper Labs has been proactive in decentralizing its NFT ecosystem, aiming to shift control from a central entity to a more distributed network. This move is likely influenced by the legal challenges and evolving regulatory landscape for NFTs and digital assets.

The settlement marks a significant moment for the NFT industry as it grapples with regulatory scrutiny. Dapper Labs, known for creating some of the most popular NFT collections, including NBA Top Shot and NFL All Day, is taking steps to ensure compliance with federal regulations. This outcome could serve as a precedent for other NFT companies facing similar legal issues.

While the settlement amount is substantial, it allows Dapper Labs to focus on future projects without the ongoing burden of the lawsuit. The company continues to be a key player in the NFT space, working on various initiatives to enhance the utility and value of digital collectibles.

For further reading on Dapper Labs and its projects, you can visit their official website or check out the latest updates on NBA Top Shot.