Investors filed a lawsuit against Dapper Labs alleging that the sale of NBA Top Shot Moments NFTs did not meet security regulations. Dapper Labs reached a settlement in the lawsuit for a total of $4 million. Roham Gharegozlou, the CEO, states that NBA Top Shot NFTs are not considered securities, and this agreement validates his position. The settlement, which involves a group of investors, marks the end of a lawsuit from 2021 requiring Dapper Labs to pay $4 million as long as the plaintiffs stop claiming NFTs are securities. Additionally, Dapper Labs will make adjustments to promote decentralization on the Flow blockchain and will also introduce a training program for staff members on federal securities regulations. Gharegozlou stated that the legal investigation validated the existence of NFTs on a decentralized public network, comparing them to items like trading cards that are not considered securities. Demonstrating this fact was crucial, as it falls in line with the company’s fundamental objective. – Roham Gharegozlou If the plaintiffs agree to stop alleging that NFTs are securities, Dapper Labs will cover the $4 million settlement. Furthermore, Dapper Labs promises to maintain the decentralization of the Flow blockchain by transferring control of any remaining Flow tokens to the Flow Foundation. A required training program for staff on federal securities laws will be put in place. The settlement is pending approval from District Judge Victor Marrero.