Flow

DeFi

Million

Planet

<div class="intro-text"> 
 Dapper Labs has agreed to a $4 million settlement to end a class-action lawsuit, which, <a style="color: #0000ff;" href="https://twitter.com/roham/status/1797832569238483244?t=eLluU-5mtCuZg_YfOno7tA&amp;s=19">according</a> to CEO Roham Gharegozlou, confirms that NBA Top Shot nonfungible tokens (NFTs) are not securities. 
</div> 
The settlement, <a style="color: #0000ff;" href="https://www.courtlistener.com/docket/60042710/67/friel-v-dapper-labs-inc/">filed</a> on June 3 in the New York District Court, concludes a lawsuit initiated in 2021 by investors who claimed Dapper Labs sold unregistered securities through its NBA Top Shot Moments NFTs.&nbsp; 
Gharegozlou stated in a June 4 social media post that the legal discovery process determined the NFTs were on a “decentralized public network,” making them akin to trading cards rather than securities. 
&nbsp; 
<blockquote>
 “These were the main allegations we wanted to prove, and continuing to litigate would have been a distraction from our core mission. The settlement also involves Dapper Labs reaffirming its commitment to the decentralization of Flow, as well as confirming the full transfer of all $FLOW coins as part of the ecosystem development reserve to the Flow Foundation”, 
</blockquote> 
<a style="color: #0000ff;" href="https://twitter.com/roham/status/1797832569238483244?s=19">Gharegozlou said</a>. 
The settlement requires Dapper Labs to pay $4 million if the plaintiffs, led by Jeeun Friel, agree to cease asserting that the NFTs are securities. 
Additionally, Dapper Labs must implement changes to ensure the Flow blockchain is decentralised. This includes transferring control of any remaining FLOW tokens to the Flow Foundation and initiating mandatory annual staff training on federal securities laws. 
&nbsp; 
The agreement awaits approval from District Judge Victor Marrero, who, in February 2023, <a style="color: #0000ff;" href="https://www.goodwinlaw.com/-/media/files/publications/securities-snapshot/2023/03_28/dapper-labs-mtd-ruling-032823-pdf.pdf?rev=ec81c69f82cf4966b2a64311425ec542">denied</a> Dapper’s motion to dismiss the suit, suggesting the NFTs might be classified as securities under the Howey test.&nbsp; 
NBA Top Shot, launched in 2020, is a joint effort between the NBA and Dapper Labs. Notable investors include basketball stars Michael Jordan, Kevin Durant, and Klay Thompson. <a style="color: #0000ff;" href="https://www.cryptoslam.io/nba-top-shot?headerPeriod=30d&amp;tab=activity">According to CryptoSlam</a>, sales volume for the NFT collection has increased by 12% in the past 24 hours. 
&nbsp; 
If you want to read more news articles like this, visit <a style="color: #0000ff;" href="https://defi-planet.com/">DeFi Planet</a> and follow us on <a style="color: #0000ff;" href="https://twitter.com/PlanetDefi">Twitter</a>, <a style="color: #0000ff;" href="https://www.linkedin.com/company/defi-planet/">LinkedIn</a>, <a style="color: #0000ff;" href="https://www.facebook.com/DeFi-Planet-129907662611402">Facebook</a>, <a style="color: #0000ff;" href="https://www.instagram.com/defi.planet/">Instagram</a>, and <a style="color: #0000ff;" href="https://coinmarketcap.com/community/profile/DeFiPlanet/">CoinMarketCap Community</a>. 
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.” 
The post <a href="https://defi-planet.com/2024/06/dapper-labs-settles-4-million-class-action-lawsuit-over-nba-top-shot-nfts/">Dapper Labs Settles $4 Million Class-Action Lawsuit Over NBA Top Shot NFTs</a> appeared first on <a href="https://defi-planet.com">DeFi Planet</a>.

Dapper Labs Settles $4 Million Class-Action Lawsuit Over NBA Top Shot NFTs

DeFi Planet

Other articles published on Jun 4, 2024

Binance Coin (BNB) Price Poised for Major Breakout Amid Rising Market Volatility

Hedera and VeChain Bulls Go Wild for Moonbag’s 88% APY Rewards, Claim It as the Top Crypto Presale.

Newly Launched Solana Memecoin Trump Loves Crypto (TRUMPCRY) Will Surge 16,000%, Looks to Challen...

MoonBag Coin Surpasses DOGE and NOT As Best Presale in 2024, Raising Over $1M

Experts Predict Dogecoin Surge

Sophisticated deepfake AI hack nets over $2m in stolen funds from OKX user

Join our free newsletter for daily crypto updates!