👉👉👉 Dapper Labs Reaches $4 Million Settlement in NBA Top Shot #NFT Lawsuit

Dapper Labs, the company behind NBA Top Shot and other notable on-chain collectibles, has reached a settlement in a long-running class action lawsuit with dissatisfied customers who claimed Top Shot NFTs were illegally offered securities, as revealed in court filings on Monday.

Under the terms of the settlement, Dapper will pay $4 million to the plaintiffs, covering monetary relief and legal fees. In exchange, plaintiffs will waive any future claims regarding Top Shot NFTs being securities.

Dapper Labs CEO, Roham Gharegozlou, stated that the settlement brings legal clarity and allows the company to focus on its core mission of delivering exceptional user experiences.

Previously, a federal judge ruled that the lawsuit could proceed, noting that Top Shot NFTs potentially met the definition of securities offering, especially given their existence on the Flow #Blockchain , originally developed by Dapper.

The judge highlighted Flow's status as a "private" blockchain, contrasting it with decentralized networks like #bitcoin and #Ethereum Additionally, statements implying potential value appreciation contributed to the judge's decision.

Although Dapper maintains that Flow is decentralized and not under its control, the settlement includes demands for certain business changes. This involves Dapper relinquishing any FLOW tokens to the Flow Foundation, among other conditions.

Notably, demands such as permitting third-party marketplaces to transact Top Shot NFTs and expediting withdrawal processing were already addressed years ago.

The lawsuit, filed in 2021 amidst the digital asset boom, posed an early test of NFT security status. While regulatory scrutiny has intensified in the #CryptoMarket , NFTs have generally avoided widespread classification as securities, barring specific cases.

Source - decrypt.co