In May 2021, Dapper Labs was sued by a plaintiff who alleged that the Top Shots collection is an unregistered security. By failing to register them with the Securities and Exchange Commission (SEC), Dapper Labs violated securities law and harmed her and other consumers.
What happened to Dapper Labs?
Finally, the lawsuit highlights a major failure of Dapper Labs with regard to its unwillingness to allow users to quickly withdraw their money from the NBA Top Shot platform. An unspecified amount of money is being sought by a class of plaintiffs yet to be certified.
Are Dapper Labs' Top Shot NFTS securities?
A judge declined to dismiss a lawsuit against Top Shot Moments creator Dapper Labs on Wednesday. Dapper Labs will have to defend itself against a lawsuit claiming its Top Shot NFTs are securities after a judge declined to dismiss the case on Wednesday.
Why did Judge Marrero deny Dapper Labs' lawsuit?
However, Judge Marrero disagreed in his Wednesday ruling, which denied Dapper Labs’ motion to dismiss the lawsuit. In the ruling, the judge went through the prongs of the Howey Test. The judge said he found that the first prong, an investment of money, was “adequately pled,” noting neither party had an objection to that prong.
