tl;dr
Dapper Labs, the company behind NBA Top Shot, has settled a class action lawsuit with customers who claimed Top Shot NFTs were illegally offered securities. The settlement involves a $4 million payout to the plaintiffs, covering monetary relief and legal fees. In return, the plaintiffs will forfeit ...
Dapper Labs, the company behind NBA Top Shot, has settled a class action lawsuit with customers who claimed Top Shot NFTs were illegally offered securities. The settlement involves a $4 million payout to the plaintiffs, covering monetary relief and legal fees. In return, the plaintiffs will forfeit any future claims that Top Shot NFTs are securities. The settlement aims to provide legal clarity and allow Dapper Labs to focus on its core mission.
Key to the judge’s finding was the fact that Top Shot NFTs live on Flow, a blockchain network originally developed by Dapper. The judge deemed Flow a “private” blockchain, in contrast with networks like Bitcoin or Ethereum, which are not controlled by any one entity. Further, the judge found that statements made by Dapper and its representatives, including Gharegozlou, had implied the collectibles would increase in value over time.
As part of the settlement, Dapper will pay out $4 million to the suit’s plaintiffs, covering monetary relief for the plaintiffs’ claims and legal fees. In return, the plaintiffs will forfeit any future right to claim that Top Shot NFTs are securities. “The settlement provides legal clarity and frees the Dapper Labs team up to focus on its core mission—delivering unparalleled experiences for its core users,” the executive said.
When the suit was first filed in 2021, during the digital asset boom, it marked one of the first tests of the security status of NFTs. Since then, huge swathes of the crypto fungible token market have come under fire by American regulators. NFTs appear to have—at least, for now—avoided such asset class-wide repudiation.
More about GameStop Corp
GameStop Corp Technical Analysis Summary
Company: GameStop Corp
Headquarters: Grapevine, Texas
Sector: Trade & Services
Industry: Retail-Computer & Computer Software Stores
Market Cap: $10.42 billion
Current Price: $1483.5
Dividend Yield: None
Price/Earnings Ratio: 0.02
EPS: 17.28
Beta: 0.0013
Volume: 5,272,800,000
Revenue: $6.38 billion
Operating Margin: 25.9%
Net Margin: -19.4%