• Loading stock data...
Saturday, August 30, 2025
The biggest names in sports media. All in one room. Get your ticket now!

NBA Top Shot Maker Faces Lawsuit for Unregistered Securities

  • Dapper Labs and its CEO Roham Gharegozlou are facing a lawsuit that alleges its video-based digital collectibles are unregistered securities.
  • A motion to dismiss the 2021 lawsuit was denied by United States District Court Judge Victor Marrero on Wednesday.
A NBA Top Shot collectible NFT of Lebron James is displayed on a phone.
NBA Top Shot

Dapper Labs, the owner of NBA-branded NFTs, and its CEO Roham Gharegozlou are facing a lawsuit that alleges its video-based digital collectibles NBA Top Shot Moments are unregistered securities, not fan products.

A motion to dismiss the 2021 lawsuit was denied by U.S. District Court Judge Victor Marrero on Wednesday.

“Plaintiffs adequately allege that Dapper Labs’ offer of the NFT, Moments, was an offer of an ‘investment contract’ and therefore a ‘security,’ required to be registered by the SEC,” the judge wrote in his decision. 

“Courts have repeatedly found that consumer goods — including art and collectibles like basketball cards — are not securities under federal law,” Dapper Labs SVP Stephanie Martin told The Verge after the ruling. “We are confident the same holds true for moments and other collectibles.”

The plaintiffs also accuse Dapper Labs of “propping up the market for Moments as well as the overall valuation of NBA Top Shot” and the value of its Flow token by preventing money withdrawals by users.

While the tokens aren’t securities, they were ruled “necessary to the totality of the scheme at issue.”

Marrero added: “Not all NFTs offered or sold by any company will constitute a security, and each scheme must be assessed on a case-by-case basis.”

Dapper Labs has three weeks to respond to the lawsuit.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

More Dildo Throwing During WNBA Games Leads to Second Arrest

The 18-year-old threw a dildo that hit another fan and his young niece.

Smelling Salts Not Banned in the NFL, but Teams Can’t Hand Them..

Teams are banned from supplying smelling salts to their players.

March Madness Fields Will Stay Put at 68—at Least Until 2027

NCAA tournament expansion is still on the table for 2027.

Featured Today

Ohio State Buckeyes wide receiver Jeremiah Smith (4) celebrates with offensive lineman Donovan Jackson (74) after a touchdown catch against Notre Dame Fighting Irish in the first quarter during the College Football Playoff National Championship at Mercedes-Benz Stadium in Atlanta on January 20, 2025.

The Most Expensive Roster Year in College Football History

The House settlement created revenue-sharing—and a big NIL loophole.
August 26, 2025

‘You’re Going to Get Beat Up’: The Liberty’s All-Male Practice Squad

A select group suits up weekly to take on the defending champs.
August 24, 2025

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.
Dec 21, 2024; Austin, Texas, USA; Texas Longhorns quarterback Arch Manning (16) warms up as the Texas Longhorns prepare to play the Clemson Tigers in the first round of the College Football Playoffs at Darrell K Royal Texas Memorial Stadium.
August 23, 2025

Schools Are Hesitant to Allow PE Into Their Athletic Departments

Regardless of budget, schools don’t believe the risk is worth the reward.
Cal Raleigh

Home Run Derby Came Down to a 1-Inch Hawk-Eye Measurement

One expert is skeptical that the measurement could be that precise.
May 23, 2025

Paul Skenes Blockbuster Trade Buzz Is Building. Will the Pirates Cash In?

Trade talk reflects the pitcher’s big surplus value and the Pirates’ struggles.
Tennis
July 7, 2025

Wimbledon’s Rollout of Automated Line Judges Has Been Rocky

The electronic system briefly went down Sunday, leading to a controversial replay.
Sponsored

Gareth Bale on MLS vs EPL, Retirement & Buying Cardiff City

Gareth Bale shares his post-soccer business playbook.
Curry
May 9, 2025

Brady, Curry, Ohtani Get Most Claims Dropped in FTX Endorser Suit

The judge did call the endorsers “uninformed, negligent, or even reckless.”
Sponsored

How NFL Next Gen Stats and AWS are Modernizing NFL Scouting Combine..

In an era where data is king, evaluating football’s next great talents demands a more sophisticated approach.
July 18, 2024; Milwaukee, WI, USA; A Secret Service agent watches over Donald Trump during the final day of the Republican National Convention at the Fiserv Forum. The final day of the RNC featured a keynote address by Republican presidential nominee Donald Trump.
October 29, 2024

Trump, Harris, and Biden Can Be Tracked Through Secret Service Strava Users

A French newspaper discovered the movements of world leaders through their security.
Jul 12, 2024; London, United Kingdom; Lorenzo Musetti of Italy returns a shot against Novak Djokovic of Serbia on day 12 at All England Lawn Tennis and Croquet Club.
October 9, 2024

Wimbledon Turns to AI After 147 Years of Tennis Line Judges

The French Open is now the lone tennis major without electronic line calling.