Renowned NFT developer Dapper Labs has reached a settlement in a securities lawsuit filed in the US. The company, the issuer of the NBA Top Shot Moments NFT collection, has agreed to pay $4 million as part of the lawsuit. “The settlement of Friel vs. Dapper Labs demonstrates our belief that NBA Top Shot Moments are not securities under federal law,” Dapper Labs said in a statement.
The plaintiffs had alleged that Dapper Labs made hundreds of millions of dollars in profits by selling unregistered securities and artificially propping up the NFT market. Dapper Labs uses its Flow blockchain to produce NBA Top Shot NFTs. The company's monthly trading volume for these NFTs hit a record high of $226 million in February 2021, but then plummeted.
