Dapper Labs, Inc. and Roham Gharegozlou Case

Jeeun Friel, on behalf of herself and a proposed class, filed a class action lawsuit against Dapper Labs, Inc. and its CEO, Roham Gharegozlou, alleging that NBA Top Shot Moments, non-fungible tokens (NFTs) sold on the Flow blockchain, are unregistered securities under the Securities Act of 1933. The complaint claims Dapper Labs and Gharegozlou violated Sections 5, 12(a)(1), and 15 by offering and selling Moments without registration, generating over $500 million in sales since June 15, 2020. The lawsuit alleges investors relied on Dapper Labs’ managerial efforts for profits and faced delays in withdrawing funds, causing significant damages. The case seeks rescissory damages, injunctive relief, and class certification. The case was dismissed with prejudice by the U.S. District Court fo