Dapper Labs, a blockchain technology and digital collectibles company, has reached a favorable settlement in the legal case Friel vs. Dapper Labs, establishing that NBA Top Shot Moments are not securities. The company emphasizes that this significant ruling clarifies the legal status of digital collectibles and ensures the continued decentralization of the Flow blockchain.
Dapper Labs Resolves Class Action Lawsuit
In a recent settlement, Dapper Labs has solidified its stance that NBA Top Shot Moments, a prominent product, do not qualify as securities under federal law. This resolution clears the way for Dapper Labs to advance in the digital collectibles market without legal ambiguity. Roham Gharegozlou, co-founder and CEO of Dapper Labs, expressed satisfaction with the decision, calling it a crucial step forward for both the company and the wider Flow community.
“We are pleased with the results of today’s settlement, which marks a significant step forward for Dapper Labs and the Flow community,” Roham Gharegozlou, co-founder and CEO of Dapper Labs told Bitcoin.com News on Monday.
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The Friel vs. Dapper Labs case was a proposed class action lawsuit against Dapper Labs and Gharegozlou, claiming that the company’s NBA Top Shot Moments non-fungible tokens (NFTs) were unregistered securities under federal law. This lawsuit marked the first application of the Howey test to NFTs, potentially setting a precedent for the regulation of NFT projects moving forward.
“Simply put, this legal clarity not only frees us up to focus on our core mission: delivering unparalleled experiences for our users, but provides Flow’s vibrant community of developers, partners, and entrepreneurs additional freedom to create groundbreaking Web3 applications for consumers around the globe,” Gharegozlou concluded.
Source: Bitcoin
