Blog

Two lawsuits now use the same name. Two lawsuits now use the same name. Both go under the title Dapper Development Lawsuit. They remain active in U.S. courts. Each case involves high financial stakes and serious legal issues. But these lawsuits are not the same. One case targets a tech company. That company is Dapper Labs, the creator of NBA Top Shot. Investors say it broke securities laws. They claim the company sold digital assets without registering them as such. They also claim that Dapper Labs controlled the platform and set prices. The other case involves a real estate business. That company is Dapper Development LLC. It builds homes in North Carolina. The owners now fight over contracts, control, and company rights. Each side blames the other for breaking the deal.

These two cases do not connect under the law. They share a name. That is where the link ends. The facts, claims, and outcomes follow different paths. Still, both cases show the same risk. Owners ignored legal safeguards. They focused on growth and ignored structure. They moved fast and missed key warning signs.That mistake now costs them time, money, and trust.

In the tech case, the company failed to meet regulatory standards. In the real estate case, the company broke from the inside. Both lawsuits show what happens when the structure breaks down. Courts now control what happens next. Judges will decide how each case ends. But the message is clear. Every business depends on clear legal structure. Owners must follow the rules. Contracts must protect all sides. Trust disappears fast. Poor planning invites lawsuits. Smart business leaders avoid risk. They write firm contracts, follow the law, and protect the business before it breaks.

Dapper Labs Faces $4 Million Settlement Over NFTs

Dapper Labs launched NBA Top Shot in 2020. The platform let users buy and sell digital NBA highlights. Each clip was called a Moment. Each moment was a unique digital asset. It worked as an NFT on the blockchain.Fans treated Moments like collectibles. They traded them like sports cards. Prices climbed fast. Many users believed the clips would increase in value. Some spent thousands of dollars. Others hoped to flip their purchases for profit.

Dapper Labs ran the entire system. Dapper Labs controlled the marketplace, processed all transactions, delayed withdrawals, and blocked access to outside markets. Buyers could only trade within the platform. That raised legal red flags. Investors filed a lawsuit against the company in 2021. They said Dapper Labs violated securities laws.y broke securities laws.They argued that the Moments met the legal test for investment contracts. That test is known as the Howey Test.

The Howey Test includes four parts:

• A person invests money

• The investment joins a common enterprise

• The buyer expects a profit

• The profit depends on the work of others

The plaintiffs said each condition applied. They claimed Dapper Labs sold NFTs as profit-driven assets and argued that users relied on the company’s efforts to raise value. They pointed to Dapper’s control over pricing, access, and sales as proof.Dapper Labs denied the claims. The company said the NFTs were not securities and compared them to trading cards. It argued that users owned digital collectibles, not shares in a business.The company asked the court to dismiss the lawsuit. The judge refused.

In February 2023, the judge denied Dapper Labs’ request. The case stayed active. This ruling changed the conversation. The case proved that courts apply old rules to new technology and that NFTs can fall under U.S. securities laws. It also warned every NFT company to follow the rules or face the consequences.

Settlement Reached Without Admission

Dapper Labs closed the case in June 2024. The company agreed to pay $4 million. It avoided trial. It avoided a ruling on whether NBA Top Shot Moments were securities. The settlement resolved the case without a final judgment. Dapper Labs did not admit wrongdoing. The company denied all liability, argued the NFTs were not securities, and said it settled to avoid more cost and distraction. The settlement included more than money. Dapper Labs also changed its business practices. It transferred control of the Flow token to the Flow Foundation. This move reduced its influence over the blockchain. The company introduced annual compliance training. All employees must now follow internal legal rules. This step aims to prevent future violations.

Dapper Labs also opened the platform. It allowed users to access outside marketplaces. Before this, users could only trade Moments inside Top Shot. Now, they have more freedom to buy and sell. The court reviewed the terms. In October 2024, the court gave final approval to the settlement. This ruling closed the case. The payout applies to users who bought Moments between June 15, 2020, and December 27, 2021. Claimants must file within the deadline. They can recover a portion of the settlement fund. The average net payout is around $0.08 per Moment after fees. This case sent a clear warning. NFT companies must follow securities laws. Investors now expect more control, more transparency, and more accountability.

Payout Information

The settlement covers all eligible buyers. Anyone who bought NBA Top Shot Moments between June 15, 2020, and December 27, 2021, qualifies for a payout. This includes purchases made directly through the Top Shot platform during that period. Each buyer can file a claim. The process takes place through the official settlement website. Users must submit a form before the deadline. The claims administrator will review each request and calculate the payout. The gross payout averages $0.12 per Moment. This amount reflects the total value before any deductions. It depends on how many Moments a person bought during the covered time . The final amount will include deductions. These include legal fees, court costs, and administrative expenses. After those cuts, the net payout drops to about $0.08 per Moment.

Claimants do not need to prove damages. They only need to show the purchase history. The records must match the dates listed in the agreement. The court has already approved the fund. The administrator will begin processing payments soon. Most users can expect digital deposits or cheques in early 2025. This payout does not cancel other claims. It only resolves the class-action suit. Anyone who accepts money gives up the right to sue Dapper Labs again for the same issue . This marks one of the first large-scale NFT settlements in the U.S. It sets a new legal example for how courts may treat digital collectibles in the future.

Dapper Development LLC in Real Estate Dispute

Owners in North Carolina Face Off in Court

Dapper Development LLC builds homes throughout North Carolina. The company focuses on residential construction and custom projects. It also manages property renovations and works with affiliated businesses. Now, the company faces internal conflict.

Three co-owners—Brendan Gelson, Mason Harris, and Kyle Tudor—filed a lawsuit. They named Andrew Cordell, another co-owner, as the defendant. The plaintiffs claim Cordell seized control without permission. They say he made business decisions without a vote. They argue he breached the terms of the operating agreement.

What the Owners Claim

The plaintiffs accuse Cordell of several violations. They accuse him of breaking the company’s agreement and acting in bad faith. They believe he used legal pressure to gain control and ignored a court-issued Consent Order. That order outlined the rules the company agreed to follow. The plaintiffs say Cordell ignored those terms.

Cordell denied every allegation. He filed a motion to dismiss the case. He argued the lawsuit had no legal grounds. The court reviewed the motion and rejected it.

Court Rulings and Case Progress

The lawsuit moved forward in September 2024. A North Carolina Business Court judge allowed the case to proceed. The court found the claims had legal merit.

In July 2025, the court issued another ruling. The judge confirmed that the Consent Order remains valid. That order carries the force of a legal contract. The company must follow what it signed. This ruling gave the plaintiffs an early win. It set boundaries for what Cordell can and cannot do. It also kept the case alive.The dispute is still active. The court has not yet ruled on final ownership or damages. The case may reach trial if both sides fail to settle.This lawsuit shows how fast internal disputes can threaten a business. It also shows the value of clear agreements and enforceable rules. Owners who ignore structure invite conflict. Courts will step in when contracts break down.

Both Cases Show the Same Risk

These lawsuits come from different worlds. One involves blockchain technology. The other involves real estate development. One targets a tech company. The other targets a small business. But both point to the same problem. Weak legal structure creates risk. Dapper Labs held too much control over its NFT platform. It managed the Flow blockchain, the token system, and the secondary marketplace. Investors said that control crossed the line. They claimed the company sold unregistered securities. That claim brought federal scrutiny. Dapper Development faced a different kind of collapse. Internal conflict took over. Co-owners argued over control, finances, and leadership. Their contracts left too much room for interpretation. The agreement failed to settle power disputes. That opened the door to lawsuits.

The results speak for themselves. Dapper Labs paid millions to settle. Dapper Development remains locked in court. Both companies lost trust, time, and money. Neither dispute had to happen. Strong agreements could have stopped these conflicts early. Better planning could have protected both businesses. Courts now control what happens next. But the damage already happened. Every business needs clear rules, defined control, and strict structure. Owners must follow all three .These two cases prove one fact. A weak foundation invites collapse.

What Happens Next

Dapper Labs May Face More Scrutiny

The $4 million settlement closes this lawsuit. But it does not end the story. Regulators still monitor Dapper Labs. Regulators still examine how the company marketed and sold its NFTs. New investigations may follow. New rules may emerge. Other NFT platforms now pay attention. Legal teams across the industry review token structures. Many projects still rely on central control. That creates risk. That invites lawsuits.

Some companies may register their NFTs with the U.S. Securities and Exchange Commission. Others may shift toward decentralization. Some may give up control over tokens and marketplaces to reduce legal risk and rebuild user trust. The Dapper Labs case reshaped the legal landscape. It showed that courts will treat some NFTs as investment contracts. It also showed that judges will apply the Howey Test to digital assets. The next wave of enforcement may come soon.

Real Estate Case Heads to Court

The Dapper Development lawsuit moves forward in North Carolina. Judges now review claims of breach, misconduct, and control abuse. The court will decide who runs the company. It will rule on ownership, voting rights, and financial access. This case also affects Tantalum Holdings, a connected rental business. The ruling may shift who manages that company. It may cut off access to bank accounts, contracts, or properties.

Small businesses across the U.S. now follow this case. Owners want answers. Investors want clarity. Lawyers see warning signs .Courts now demand structure. They expect contracts to outline duties. They expect members to follow rules. Judges punish vague deals and loose management. They reward companies that set clear boundaries.

The Bigger Lesson

Dapper Labs and Dapper Development LLC do not share an industry. They do not share legal issues. But they share one clear lesson. Weak structure leads to real damage.

Both companies now face uncertain futures. Dapper Labs must regain investor confidence. Dapper Development must survive a courtroom fight. Both must repair internal systems. Both must restore trust. Neither case had to happen. Early legal planning could have stopped the fallout. Better contracts could have avoided the lawsuits. Clear rules could have protected owners, customers, and partners. Every business faces risk. Markets change. Customers leave. Mistakes happen. But legal chaos is different. Legal chaos comes from poor discipline. It comes from ignoring contracts. It comes from control without rules.

Courts do not reward speed. The reward structure. They expect leadership, demand clear agreements, and enforce legal order. These lawsuits show what happens when owners ignore that. They show how fast growth can fall apart. They show how trust collapses when rules fail. Smart companies prepare early. They build strong foundations, write clear contracts, and follow the law before problems grow. This is the bigger lesson. Every business needs a legal structure. That structure must hold, even under pressure. That is how companies last. That is how they win.

Lessons for Startups and Investors

Every business needs rules. Every founder must know the law. These two lawsuits expose the risks. They also offer clear lessons.

NFT founders must follow securities laws.
Tokens may look like collectibles. But courts look deeper. Founders must get legal review before any public sale. They must prove that the product meets legal standards.

Private companies must write strong agreements.
Owners cannot rely on verbal promises. Loose terms lead to lawsuits. Every contract must define control, exit rights, and voting power. Every agreement must include protections. Ambiguity invites conflict.

Investors must study control structures.
Control always creates risk. If one person holds too much power, problems follow. Smart investors ask hard questions. They look at who holds the keys. They ask what happens if leadership breaks down.

Startups must separate marketing from compliance.
Growth matters. But rules matter more. Courts review every ad. They review every pitch. They search for signs of profit promises. Founders must speak carefully. Compliance teams must review everything.

The law is no longer behind.
Judges now apply old rules to new assets. Regulators now monitor NFTs. Courts now expect contracts to match conduct.

FAQs

What is the Dapper Development Lawsuit?
It refers to two separate cases. One involves Dapper Labs and the NBA Top Shot platform. The other involves Dapper Development LLC, a North Carolina real estate firm.

Who sued Dapper Labs?
A group of investors sued the company in 2021. They said Dapper Labs broke securities laws by selling Moments as unregistered assets.

Did Dapper Labs admit guilt?
No. The company denied all claims. It settled without accepting liability.

Who can claim money from the settlement?
Any person who bought NBA Top Shot Moments between June 15, 2020, and December 27, 2021.

Conclusion

These lawsuits prove one truth. No business survives without legal strength. Dapper Labs faced legal trouble due to its control over the platform. The platform controlled prices, access, and token use. Courts saw those facts as signs of security. That triggered federal scrutiny. That triggered a lawsuit. Dapper Development broke from the inside. Owners clashed over power. They disagreed on control, contracts, and roles. The company lacked a solid structure. That opened the door to court intervention.

Both companies had choices. The lesson stays simple. Smart companies move early. They act early and write clear contracts. They define roles, set control, and follow rules before growth adds pressure.

Power struggles destroy teams. Vague terms cause legal chaos. Weak documents create doubt. Courts step in when trust breaks down. Strong contracts prevent collapse. Legal structure builds confidence. Clear rules protect business value. These lawsuits show the cost of ignoring that truth . Every company—startup or seasoned—must treat structure as survival. Good businesses grow through structure. They last because they plan.