Dapper Labs Faces Lawsuit for Unregistered NBA Top Shots NFTs

• Court Dispute Over Dapper Labs’ NBA Top Shots NFTs – A class action lawsuit was filed against Dapper Labs in May 2021, alleging that their NBA Top Shots NFTs were unregistered securities.
• Supreme Court Decision – Judge Victor Marreo denied Dapper Labs’ motion to dismiss the case despite many people thinking the NBA Top Shots NFTs are far from being securities.
• Comments From Lawyers and Observers – Jake Chervinsky and other lawyers have been making comments regarding Judge Marreo’s ruling, defending his stance as he did not give a final decision but allowed the case to proceed since the securities claims were plausible.

Court Dispute Over Dapper Labs’ NBA Top Shots NFTs

A class action lawsuit was filed by plaintiff Jeeun Friel in May 2021 against Dapper Labs, alleging that their NBA Top Shots NFTs were unregistered securities. After the last court appearance, several lawyers have been making comments regarding Judge Victor Marreo’s ruling.

Supreme Court Decision

Judge Victor Marreo denied Dapper Labs’ motion to dismiss the case despite many people thinking the NBA Top Shots NFTs are far from being securities. Blockchain Association’s chief legal officer Jake Chervinsky and other lawyers lambasted a post misinterpreting the judge’s decision on the case.

Are Dapper Labs’ Basketball NFTs Securities?

The court will decide whether NBA Top Shots are securities, as the lawsuit regarding the NFT collections has been on since May 2021. Plaintiff Jeeun Friel sued Dapper Labs for offering unregistered securities as tokenized National Basketball Association NFTs through its NBA Top Shot marketplace. The platform experienced an overwhelming influx of buyers and sellers for these collectibles which led customers to flood Twitter with complaints and lamentations seeking to pull their funds from it. This then led to Jeeun Friel filing a lawsuit demanding justice on what they believed was an offer of unregistered securities.

Comments From Lawyers and Observers

Asides from Jake Chervinsky’s statement defending Judge Marrero’s stance, other lawyers have also made comments about this issue. They believe that judge Marrero did not give a final decision but allowed the case to proceed since there were plausible claims that could be made proving that these could be considered as unregistered security offerings.

Conclusion

The dispute over whether or not these tokenized National Basketball Association tokens offered by Dapper labs can be deemed as security offerings is still ongoing with no clear resolution yet in sight. Various opinions have come up with prominent legal figures defending both sides of this issue, leaving us all wondering what will happen next in this long-standing dispute between those claiming them to be illegal offerings of unregistered security versus those who claim otherwise