Dapper Labs settles 2021 class-action lawsuit over unregistered securities sales and market manipulation for $4M, maintaining NFTs are not securities.

Dapper Labs, creator of NBA Top Shot NFTs, settles a 2021 class-action lawsuit for $4M, with plaintiffs alleging unregistered securities sales & market manipulation. Dapper maintains their NFTs are not securities. As part of the settlement, plaintiffs will forfeit any future right to claim Top Shot NFTs are securities. Dapper also committed to decentralizing Flow blockchain and enacted annual staff training on federal securities laws.