Non-fungible token (NFT) company Dapper Labs has reached a tentative settlement agreement with investors who accused it of violating federal securities laws. If a New York County judge approves the agreement, it will end a nearly three-year legal battle.

In 2021, plaintiffs accused Dapper Labs' flagship product, NBA Top Shot Moments, of being unregistered securities because they believed their value would increase with the overall popularity of the project.

As part of the agreement, Dapper Labs will pay $4 million and make a number of changes to its operations, including training employees on securities law compliance and ethical marketing practices.