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<ul><li>Dapper Labs settled the class-action lawsuit that alleged the company had violated federal securities laws.</li><li>As per the settlement agreement, the company would pay the plaintiff $4 million.</li><li>Friel vs. Dapper Labs case claimed the company’s NBA Top Shot Moments NFTs were unregistered securities.</li></ul>Dapper Labs, the company behind the NBA Top Shot Moments, has reached a tentative <a href="https://x.com/Echoeweb/status/1797859620427333986" rel="noopener noreferrer nofollow">settlement agreement</a> with the plaintiffs who alleged that the company had violated federal security laws. According to the agreement, the company decided to settle the lawsuit for $4 million asking the plaintiffs to withdraw their claim that NBA Top Shot NFTs are securities.<img src="https://lh7-us.googleusercontent.com/docsz/AD_4nXepmw8p-roK5jlYjqzQS7-Od_NRUCql_mBuEezqycoUGkqxgBeymHV62XkM02OQitq8B4AQWc96gsABmh3sb_C5GCL4iZuoSRB-YZVEL1hS_OvPMW0pDPDWz9e1uO0-ffnwwYE6vSzjJYT6Xx-E?key&#61;S3N8jHv01whDkMw7rZoqfg" />Background of the LawsuitThe Friel Vs. Dapper Labs&#39; class action lawsuit against Dapper Labs and its co-founder and CEO Roham Gharegozlou started in 2021 when the plaintiffs filed the case with the U.S. District Court for the Southern District of New York. They <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.562991/gov.uscourts.nysd.562991.4.1_1.pdf" rel="noopener noreferrer nofollow">accused</a> Dapper Labs of making hundreds of millions of dollars in profit by selling unregistered securities. Additionally, they claimed that the company prevented investors from withdrawing their funds for months on end and propped up the market by preventing investors from cashing out.Terms of the SettlementIf the agreement is approved, the $4 million settlement fund will go towards class members, attorney’s fees, and settlement administrator costs. Furthermore, Dapper Labs has also agreed to certain business changes demanded by the plaintiffs as a condition for the <a href="https://cryptotale.org/terraform-labs-and-co-founder-do-kwon-reach-settlement-with-sec-luna-surges/" rel="noopener noreferrer nofollow">settlement</a>.<a href="https://cryptotale.org/dapper-labs-settles-class-action-lawsuit-involving-nba-top-shot-nft-for-4-million/" rel="noopener noreferrer nofollow">Read more on CryptoTale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Dapper Labs Settles Class Action Lawsuit Involving NBA Top Shot NFT for $4 Million

CryptoTale

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