A New York federal judge on Tuesday gave initial approval to a proposed $4 million settlement between the firm behind NBA-focused non-fungible tokens and a class of purchasers who accused the digital assets company of selling the digital assets as unregistered securities.
Under the proposed settlement, which was filed Monday, Dapper Labs will pay the sum for distribution to a newly certified class of those who purchased or acquired NBA Top Shot Moments between June 15, 2020, and December 27, 2021.
“The court finds that (a) the settlement stipulation resulted from good faith, arm’s length negotiations with the benefit and aid of an experienced mediator, and (b) the settlement stipulation is sufficiently fair, reasonable and adequate to the settlement class member,” U.S. District Judge Victor Marrero wrote in his order.
Dapper Labs has also pledged to undertake or continue certain business practices to address the aspects of the NFT sales that purchasers said made them more like investment contracts.
