Dapper Labs reaches $4 million settlement in NBA Top Shot NFT lawsuit

2024-06-04 08:23:50

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ChainCatcher news, according to Decrypt, court documents released on Monday show that Dapper Labs has reached a settlement with dissatisfied customers over a years-long class action lawsuit, in which these customers claim that Top Shot NFTs were illegally offered as securities. Dapper Labs CEO Roham Gharegozlou stated that as part of the settlement, Dapper Labs will pay $4 million to the plaintiffs. This funding includes monetary relief for the plaintiffs' claims and will cover legal fees; in return, if the settlement is approved, the plaintiffs will waive any future rights to claim that Top Shot NFTs are securities.

However, Dapper's co-founder added that the plaintiffs in the class action lawsuit demanded the company make "certain business changes" as a condition of the settlement. These demands have been accepted by Dapper, including the company transferring all of its held FLOW tokens to the Flow Foundation. Other demands, such as allowing third-party markets outside of Dapper to trade Top Shot NFTs, and the company's request for more timely processing of withdrawals, were resolved years ago.

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