September 1, 2025 — Two unrelated lawsuits now share the same name: Dapper Development Lawsuit. One involves a major blockchain company. The other targets a real estate business in North Carolina.
The first case focuses on Dapper Labs, the tech firm behind NBA Top Shot. The company faces claims that it sold unregistered securities through digital basketball clips. Investors argue that the firm inflated prices and broke U.S. securities laws.
The second case involves Dapper Development LLC, a private homebuilding company. Co-owners are locked in a fight over contracts, internal control, and ownership rights. Allegations include breach of duty, abuse of process, and violations of internal agreements.
Both cases involve high-value disputes. Both reveal problems in leadership, legal planning, and company structure. The lawsuits also show how fast businesses can face legal collapse when owners lose trust.
These cases now move forward under close court supervision. Both outcomes may influence how startups and private firms handle compliance, contracts, and internal governance.
Dapper Labs Pays $4 Million in NFT Securities Case
Vancouver, Canada — Dapper Labs has settled a class-action lawsuit. The company paid $4 million. Investors had accused it of selling unregistered securities.
Dapper created NBA Top Shot in 2020. The platform allowed fans to buy and sell Moments, which are short video clips of NBA highlights. Users traded them like sports cards.
The lawsuit began in May 2021. Plaintiffs said the Moments were securities. They claimed Dapper controlled prices by blocking trades on other platforms.
A federal judge denied Dapper’s motion to dismiss in February 2023. The court said the NFTs could qualify as securities under the Howey Test. That legal standard includes investment, shared effort, profit expectation, and company control.
Dapper chose to settle. It did not admit guilt. It also made changes to address concerns:
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Handed Flow token control to the Flow Foundation
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Started yearly compliance training for staff
The court approved the settlement in October 2024. Buyers of Moments between June 15, 2020, and December 27, 2021, qualified for a payout.
Reports in March 2025 confirmed an average payout of $0.12 per share. Final payments begin in early 2025.
Real Estate Battle Rises in North Carolina
Charlotte, NC — A separate legal fight involves Dapper Development LLC. The company builds and renovates homes in North Carolina. Internal conflict between co-owners led to legal action.
Plaintiffs include Brendan Gelson, Mason Harris, and Kyle Tudor. They filed a case against Andrew Cordell, a co-owner and the defendant.
They accused Cordell of:
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Violating the company’s operating agreement
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Acting in bad faith
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Using lawsuits to pressure others
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Grabbing control without consent
The court denied Cordell’s motion to dismiss. The lawsuit continues in state court.
This dispute also involves Tantalum Holdings, a partner firm that manages rentals. Plaintiffs claim Cordell disrupted business and ignored court rules. They now seek a decision that clarifies each person’s rights and duties.
What the Two Cases Reveal
The Dapper Labs case shows how fast new tech can run into old laws. NFT creators must follow rules when selling digital assets. Missteps can lead to large lawsuits.
The Dapper Development case shows a different risk. Small private companies often lack clear internal rules. That creates power struggles and costly legal fights.
Both lawsuits highlight serious business problems. One lives in the crypto world. The other stays grounded in real estate. Both show that leadership, control, and legal structure matter.
What Comes Next
Dapper Labs now faces pressure from both investors and regulators. Questions remain about how the company classified and sold its NFTs. The $4 million settlement may not end the scrutiny. Legal experts say more platforms could face similar challenges. Regulators may tighten rules around digital collectibles. Courts may redefine how crypto-based assets fall under existing securities laws.
Other NFT platforms are watching this closely. Many may change their models to avoid similar lawsuits. Some may register products with the SEC. Others may shift toward full decentralization. The goal is to avoid legal risk and build trust with users.
Dapper Development’s case moves forward in North Carolina courts. Judges will rule on core issues of ownership, control, and fiduciary duty. The outcome could reset who manages the company. It may also affect related businesses like Tantalum Holdings. Owners may lose voting rights, control over finances, or access to company property.
Small companies across the country are paying attention. Internal disputes can break a business. Clear roles, strong contracts, and legal discipline now matter more than ever.
Both lawsuits point to the same truth. No company can grow on shaky legal ground. Smart businesses set rules early. They follow laws and settle conflicts before they spread. That simple discipline protects every firm — whether it sells NFTs or builds homes.
Disclaimer
This article covers legal cases from public records. It does not give legal or financial advice. Do not use this content to guide decisions. Ask a licensed attorney about your situation. All facts match what was known at the time of publication. Court decisions may change after this article was released.
FAQs About the Dapper Development Lawsuits
What does the Dapper Development Lawsuit refer to?
The name applies to two different lawsuits. One involves Dapper Labs, a tech company that sells NBA NFTs. The other involves Dapper Development LLC, a North Carolina real estate firm. Both cases focus on disputes over control, contracts, and company rights.
Who filed the lawsuit against Dapper Labs?
A group of investors filed the lawsuit. They claimed Dapper Labs broke U.S. securities laws through sales on its NBA Top Shot platform.
Did Dapper Labs admit to any violations?
Investors filed the lawsuit. They said Dapper Labs broke U.S. securities laws through NBA Top Shot sales.
Who can receive money from the Dapper Labs settlement?
Any person who bought NBA Top Shot Moments between June 15, 2020, and December 27, 2021, can file a claim.
