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ARTICLE · 03 APRIL 2023

Court Denies Dapper Labs' Motion To Dismiss, Finding That NFTs May Be Securities

Goodwin Procter LLP
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On February 22, 2023, U.S. District Judge Victor Marrero of the Southern District of New York denied a motion to dismiss a putative class action brought by purchasers of a non-fungible token against Dapper Labs, Inc., and its CEO.

United StatesTechnology
Jennifer Burns Luz
Jennifer Burns Luz
Jonathan Shapiro
Jonathan Shapiro
Zoe Bellars
Zoe Bellars
Lauren Jackson
Lauren Jackson
Maria Massimo
Maria Massimo
Ilana Saltz
Ilana Saltz

Court Denies Dapper Labs' Motion to Dismiss, Finding That NFTs May Be Securities; Delaware Chancery Court Dismisses Caremark Claims Against McDonald's Directors; Delaware Chancery Court Rejects Stockholder Monopoly Suit Against Facebook; First-Ever Criminal Insider Trading Case Based Solely on 10b5-1 Plans; SDNY Allows Bitcoin Tip Case to Proceed Against Stock Promoter

On February 22, 2023, U.S. District Judge Victor Marrero of the Southern District of New York denied a motion to dismiss a putative class action brought by purchasers of a non-fungible token (NFT) against Dapper Labs, Inc. (Dapper Labs), and its CEO. In the complaint, the plaintiffs claimed that Dapper Labs' failure to register its NBA Top Shot Moments NFT with the U.S. Securities and Exchange Commission (SEC) violated Sections 5 and 12(a)(1) of the Securities Act of 1933 (Securities Act), and that the CEO was liable as a "control person." In denying the motion to dismiss, the court rejected the

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