The Daniel Patrick Moynihan U.S. Courthouse in the Southern District of New York, at 500 Pearl St. (Photo: Ryland West/ALM) Dapper Labs $4M Settlement, $1.3M in Attorney Fees Reveal NFT Settlement Trend
"What you see happening is the real development around NFTs isn't necessarily in a particular image or art or music or film," said Jim Walker, a partner at Perkins Coie who counsels blockchain businesses on potential regulatory risk avoidance and mitigation.
October 31, 2024 at 02:13 PM
4 minute read
The original version of this story was published on New York Law Journal
What You Need to Know
- A class of purchasers sued Dapper Labs at the height of the NFT boom and this week obtained a $4 million settlement.
- The combined market capitalization from sales of the NBA Top Shot NFTs sold by Dapper Labs netted the company nearly $2 billion.
- An Am Law 50 firm attorney and blockchain expert provided an observation on the larger context of the litigation.
A federal district court in New York granted final approval to a seven-figure attorney fees award and a multimillion-dollar settlement between Dapper Labs Inc., the firm behind National Basketball Association non-fungible tokens, and a class of purchasers who alleged that these digital assets sold by the defendant were unregistered securities.
Jim Walker, a Perkins Coie partner who counsels blockchain businesses on regulatory risk avoidance and mitigation and is not involved in the case, observed that the attorneys should be "careful about what to offer and how you offer it, and if you market something in any media that you are directly marketing or have some input or control as an investment, you have exposure."
Jim Walker, partner at Perkins Coie in New York. (Courtesy photo) NOT FOR REPRINT
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Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
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Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
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Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
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