Dapper Labs Agrees to a $4 Million Settlement in NFT Lawsuit

Dapper Labs, the company behind NBA Top Shot and other prominent on-chain collectibles, has settled a yearslong class action lawsuit with disgruntled customers who argued that Top Shot NFTs constituted illegally offered securities, court filings revealed Monday.

As part of the settlement, Dapper will pay out $4 million to the suit’s plaintiffs, the company’s CEO, Roham Gharegozlou, told Decrypt. Those funds include monetary relief for the plaintiffs’ claims, and will also cover legal fees.

In return, if the settlement is approved, the plaintiffs will forfeit any future right to claim that Top Shot NFTs are securities, per Gharegozlou. 

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