TechFlow news, according to The Block, Dapper Labs, the developer of NBA Top Shot, has reached a settlement in a class-action lawsuit alleging the company violated securities laws by improperly selling digital collectibles. According to a court filing submitted by Dapper Labs, the company agreed to pay $4 million to settle the litigation. The document also states that the funds will be placed into a settlement fund and distributed to eligible claimants.
In a statement, Dapper Labs said, "The settlement in Friel v. Dapper Labs further confirms Dapper Labs' position that NBA Top Shot Moments are not securities under federal law." Plaintiffs in the lawsuit claimed that Dapper Labs earned hundreds of millions of dollars in profits by selling unregistered securities while artificially propping up its NFT marketplace.
