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NBA Top Shot Class Action Lawsuit

Company Name
Dapper Labs, Inc.
Class Period
June 15, 2020 to Present
Motion Deadline
October 5, 2021
Court
Southern District of New York
11 days left to seek lead plaintiff status

Case Summary

The NBA Top Shot class action lawsuit charges Dapper Labs, Inc. and its founder and CEO, Rohan Gharegozlou, with violations of the Securities Act of 1933 and seeks to represent purchasers of NBA Top Shot Moments from June 15, 2020 through the present (“Class Period”).  The NBA Top Shot class action lawsuit was removed to the Southern District of New York on August 7, 2021 and is captioned Friel v. Dapper Labs, Inc., No. 21-cv-05837.

If you wish to serve as lead plaintiff of the NBA Top Shot class action lawsuit, please provide your information by clicking here.  You can also contact attorney Jennifer Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the NBA Top Shot class action lawsuit must be filed with the court no later than October 5, 2021.

CASE ALLEGATIONS: NBA Top Shot Moments are a type of digital asset, known as a non-fungible token (“NFT”), that depict video clips of highlights from NBA basketball games.  The NFTs exist on a “blockchain,” which is a decentralized digital ledger that records transactions of digital assets.

According to the NBA Top Shot class action lawsuit, investors purchased NBA Top Shot Moments with the hope that their value would increase in the future as the project grew in popularity, based upon Dapper Labs’ managerial efforts.  As the NBA Top Shot class action lawsuit thus alleges, because NBA Top Shot Moments are properly classified as a security under federal law, defendants were required to file registration statements with the U.S. Securities and Exchange Commission and comply with federal securities laws – but failed to do so.  By selling these unregistered securities to investors, the NBA Top Shot class action lawsuit alleges that defendants reaped hundreds of millions of dollars in profits.

The NBA Top Shot class action lawsuit further alleges that defendants used their control over NBA Top Shot to prevent investors from withdrawing their funds for months on end.  As such, by preventing investors from “cashing out,” defendants ensured that money stayed on the platform, propping up the market for NBA Top Shot Moments as well as the overall valuation of NBA Top Shot itself.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased NBA Top Shot Moments during the Class Period to seek appointment as lead plaintiff in the NBA Top Shot class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the NBA Top Shot class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the NBA Top Shot class action lawsuit.  An investor’s ability to share in any potential future recovery of the NBA Top Shot class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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