The dapper development lawsuit is actually three separate legal actions against Dapper Labs. Together, they represent over $16 million in combined settlement funds affecting millions of NFT collectors and platform users.
If you ever owned an account on NBA Top Shot, NFL All Day, Disney Pinnacle, UFC Strike, or La Liga Golazos, money could be waiting for you. But one critical deadline, April 15, 2026, controls whether you get paid.
This guide breaks down every settlement. You will learn exactly who qualifies, how much each case pays, and the step-by-step process to file your claim.
Here is the surprise: roughly 96% of settlement funds in class actions go unclaimed. That means most people who deserve money from these cases will never collect it, simply because they did not know or did not file in time.
What Is the Dapper Development Lawsuit?
The dapper development lawsuit refers to multiple class action cases filed against Dapper Labs, the blockchain company behind NBA Top Shot and other NFT platforms. Often referred to in legal and blockchain circles as the class action against Dapper Labs involving NBA Top Shot NFTs, the case centers on allegations that Dapper Labs sold unregistered securities through its NBA Top Shot “Moments” NFTs, potentially violating federal securities laws.
But that is only one piece of the puzzle. The term “Dapper Development lawsuit” now captures multiple distinct legal actions against entities using the Dapper name, each targeting a different legal violation, and each affecting a different consumer group.
There are three active tracks to understand:
- Securities class action ($4 million): Alleged NBA Top Shot Moments were unregistered securities
- Pixel privacy settlement ($7.05 million): Alleged data sharing via Meta’s tracking pixel
- VPPA settlement ($5 million): Alleged sharing of video viewing data with third parties
A separate case in North Carolina, Dapper Dev., LLC v. Cordell, Case No. 24CV018718-590, involves an internal business dispute among LLC co-owners engaged in real estate development. That case does not involve consumer payouts.
| Case Track | Settlement Amount | Primary Claim | Court |
|---|---|---|---|
| Securities Class Action | $4,000,000 | Unregistered securities (NFTs) | S.D.N.Y. |
| Pixel Privacy (Meta) | $7,050,000 | Data sharing via Meta pixel | Federal |
| VPPA Settlement | $5,000,000 | Video data shared without consent | N.Y. Supreme Court, Nassau County |
Dapper Labs Settlement 2026 Status Update
As of April 2026, two of the three Dapper Labs settlements are in different stages. The $4M NFT settlement is in distribution. The $5M VPPA settlement awaits final court approval on April 15, 2026. As of February 2026, distributions for the securities case are underway, though appeals remain possible. That means some claimants have already received money from the $4 million fund.
The $5 million VPPA case is the one demanding immediate attention. The court will determine whether to grant final approval to the Dapper Labs class action settlement at a hearing on April 15, 2026.For the $7.05 million pixel privacy case, settlement payments were distributed to class members who submitted timely and valid claims on March 19, 2026. That claim window is now closed.
| Settlement | Status (April 2026) | Can You Still File? |
|---|---|---|
| $4M Securities | Distributing payments | No, deadline passed |
| $7.05M Pixel Privacy | Payments sent March 2026 | No, deadline passed |
| $5M VPPA | Awaiting final approval April 15 | Yes, file by April 15, 2026 |
Dapper Labs Lawsuit Payout Breakdown
The total combined payout across all three Dapper Labs settlements is $16.05 million. Each case has its own fund, its own eligibility rules, and its own math for how money gets divided. The $4 million securities settlement provides four million dollars gross, plus interest as it accrues, minus attorneys’ fees, costs, administrative expenses, and taxes on interest, to pay claims. From the $5 million VPPA fund, after deducting notice and administration expenses, attorneys’ fees capped at one-third of the gross amount (approximately $1.67 million), and incentive awards of $5,000 each to the class representatives, valid claimants will receive cash payments of up to $5 per person via Zelle, Venmo, or PayPal. More than 1.2 million consumers who bought NBA Top Shot NFTs are set to share in the $7 million pixel privacy settlement.
Think of it like splitting a pizza. The more people who claim a slice, the smaller each piece gets. That is why filing early and correctly matters so much.
- $4M Securities Fund: Pays based on number and price of Moments purchased
- $7.05M Pixel Privacy Fund: Pro rata distribution to 1.2 million eligible users
- $5M VPPA Fund: Up to $5 per person after deductions
Key Takeaway: The only settlement still accepting new claims in April 2026 is the $5 million VPPA case, and the deadline is April 15.
How Much Is the Dapper Labs Payout Per Person?
The per-person payout varies dramatically depending on which settlement you qualify for. The $4M securities settlement represents an estimated average recovery of $0.12 per Moment for the approximately 33,037,779 Moments purchased or otherwise acquired during the settlement class period, though this is not an estimate of the actual recovery per Moment you should expect. The average approximate recovery, after deduction of attorneys’ fees and expenses approved by the Court, is $0.08 per Moment purchased or acquired during the settlement class period.
For the VPPA case, the numbers are different. Dapper Labs settlement class members who file a valid, timely claim form are eligible to receive a cash payment of up to $5.
| Settlement | Estimated Per-Person Payout | Payment Method |
|---|---|---|
| $4M Securities | ~$0.08 to $0.12 per Moment (after fees) | Check or electronic payment |
| $7.05M Pixel Privacy | Pro rata share (payments sent March 2026) | Electronic payment |
| $5M VPPA | Up to $5 per claimant | Zelle, PayPal, or Venmo |
If you bought hundreds or thousands of Moments, those small per-Moment amounts add up. Someone who bought 5,000 Moments could see $400 to $600 from the securities case alone.
Who Qualifies for the Dapper Development Lawsuit?
Eligibility depends on which of the three cases applies to you. The broadest one, the VPPA settlement, covers anyone who held an account on five different Dapper platforms.The $5 million Dapper Labs class action settlement received preliminary approval from the court on December 19, 2025 and covers all individuals who held an account on NFL All Day, Disney Pinnacle, UFC Strike, NBA Top Shot, and/or La Liga Golazos between June 15, 2020 and January 30, 2025. For the securities settlement, you must have purchased or acquired NBA Top Shot Moments during the settlement class period, which spans from June 15, 2020, to December 27, 2021. For the $7.05M pixel privacy case, you qualified if you were a person in the United States who, from June 15, 2020, to and through January 30, 2025, had an active Facebook account and an NBA Top Shot account.
Quick Eligibility Checklist:
- Did you have an account on NBA Top Shot, NFL All Day, Disney Pinnacle, UFC Strike, or La Liga Golazos?
- Was that account active between June 15, 2020 and January 30, 2025?
- Are you a U.S. resident?
If you checked all three, you likely qualify for the VPPA settlement.
How to File a Dapper Labs Claim
Filing a claim for the active VPPA settlement requires a few simple steps.To receive a claim settlement payment from the settlement fund, you must complete the claim form and submit it online by April 15, 2026 or by mail postmarked by April 15, 2026. If you received a notice indicating that you are part of the settlement class, you will have a 10-character alphanumeric “Unique ID” and a 4-digit “PIN,” both found on your notice. All class members must include proof of their Dapper Labs account by providing their Dapper account username and associated email address.
Step-by-Step Filing Process:
- Check your email for a settlement notice with your Unique ID and PIN
- Visit the official settlement website
- Enter your Unique ID and PIN
- Provide your Dapper account username and email
- Choose your payment method: Zelle, PayPal, or Venmo
- Submit before April 15, 2026
If you did not receive a notice by email, you can download and print a paper claim form from the settlement website and mail it to: Dapper VPPA Class Action Settlement Administrator, P.O. Box 4380, Portland, OR 97208-4380.
Key Takeaway: You need your Unique ID and PIN from the settlement notice to file online; check your email inbox and spam folder immediately.
Dapper Labs Settlement Deadline 2026
April 15, 2026 is the single most important date in the entire Dapper Labs settlement calendar this year. April 15, 2026 is the most urgent deadline in the entire Dapper Development case, serving as both the VPPA claim filing deadline and the final approval hearing for the $5 million privacy settlement. All three deadlines fall on April 15, 2026: this is the same date to file your claim, opt out, or submit an objection.
Missing this date means losing your right to payment permanently. Missing the claim deadline means losing your right to payment. The settlement fund will be distributed only to those who file valid claims on time.
| Action | Deadline |
|---|---|
| File VPPA claim | April 15, 2026 |
| Opt out of VPPA settlement | April 15, 2026 |
| Object to VPPA settlement | April 15, 2026 |
| Final approval hearing (Nassau County) | April 15, 2026 |
The Court will hold the Fairness Hearing on April 15, 2026, in Courtroom 4th Floor West, at the Supreme Court of the State of New York, County of Nassau, 100 Supreme Court Drive, Mineola, NY 11501.
What Is the Dapper Labs VPPA Settlement?
The Dapper Labs VPPA settlement is a $5 million class action resolution based on alleged violations of the Video Privacy Protection Act. A proposed settlement has been reached in a class action lawsuit claiming that Dapper Labs, Inc., disclosed its online subscribers’ personally identifiable information to various third parties without consent in violation of the Video Privacy Protection Act. The Honorable Lisa A. Cairo, of the Supreme Court of the State of New York, County of Nassau, is overseeing this case, called Ohebshalom v. Dapper Labs, Inc., Index No. 615987/2025. The class representatives are Daniel Ohebshalom, Matthew Kimoto, Thomas Fan, and Clinton Brown, suing on behalf of a group of people who have similar claims.
The VPPA itself is a federal law from 1988. It was originally designed to protect video rental records. In the digital age, courts have applied it to online video viewing data shared through tracking pixels.
- Case Name: Ohebshalom v. Dapper Labs, Inc.
- Index Number: 615987/2025
- Settlement Fund: $5,000,000 gross
- Class Counsel: Bursor and Fisher, P.A.
- Settlement Administrator Phone: 1-888-887-2497
Inside the Dapper Labs $5 Million Settlement
The $5 million VPPA settlement fund sounds large, but the net amount reaching claimants is smaller after deductions. Attorneys’ fees are capped at one-third of the gross amount, approximately $1.67 million, and incentive awards of $5,000 each go to the class representatives.The settlement administrator will issue payments to approved claimants approximately 75 days after the court grants final approval of the settlement.As part of the settlement, Dapper Labs has also agreed to cease the operation of third-party tracking technologies on any of its website pages, including pixels from Meta, Google, Microsoft, Twitter or X, Reddit and TikTok, that could capture information regarding videos purchased or viewed by site users.
| Fund Detail | Amount |
|---|---|
| Gross Settlement Fund | $5,000,000 |
| Estimated Attorney Fees | ~$1,670,000 |
| Class Rep Incentive Awards | ~$20,000 total |
| Admin and Notice Costs | Deducted from fund |
| Net Available for Claimants | Varies based on claims filed |
The settlement is not just about money. The injunctive relief, forcing Dapper Labs to disable tracking pixels, represents a real change in how the company collects user data going forward.
Key Takeaway: After attorney fees and costs, expect the actual payment to be modest per person, but the privacy protections forced on Dapper Labs are significant.
The Dapper Labs $4 Million Settlement Explained
The $4 million securities settlement resolved allegations that NBA Top Shot Moments were sold as unregistered investment contracts. This case centers on allegations that Dapper Labs sold unregistered securities through its NBA Top Shot “Moments” NFTs, and the $4 million settlement was approved in October 2024. By June 2024, the parties reached a tentative settlement, with Dapper Labs agreeing to pay $4 million into a fund for class members, covering claims from purchasers between June 15, 2020, and December 27, 2021. The settlement also required business changes: transferring Flow blockchain control to a decentralized foundation, allowing Moments trading on third-party platforms, improving withdrawal processes, and implementing securities compliance training for employees.
This case is closed for new claims. The filing deadline was August 30, 2024. If you missed it, you cannot participate now.
- Case Name: Friel v. Dapper Labs, Inc., et al.
- Case Number: 1:21-cv-05837-VM
- Court: U.S. District Court, Southern District of New York
- Judge: Victor Marrero
- Claim Deadline: August 30, 2024 (passed)
- Status: Distribution underway as of early 2026
NBA Top Shot Class Action Settlement Overview
The NBA Top Shot class action is the most well-known of the three Dapper Labs cases because it directly questioned whether NFTs can be securities. In 2021, the class action plaintiffs accused Dapper Labs’ flagship product, the NBA Top Shot Moments, of being unregistered securities because the value of the NFTs would increase with the popularity of the project as a whole. Plaintiffs also claimed that Dapper Labs prevented investors from cashing out for “months on end” to keep value locked on the platform, and did not allow Moments to be bought or sold on outside NFT platforms at the time the suit was filed.
The case was like buying a concert ticket from a venue that locked the doors. You could buy, but you could not easily sell or leave with your money. That locked-in dynamic was central to the plaintiffs’ argument. The court reasoned that since Moments were traded on the Flow blockchain and marketplace, which Dapper privately controlled, purchasers relied on Dapper Labs’ managerial efforts, fulfilling the “common enterprise” and “efforts of others” prongs of the Howey test. The settlement agreement barred the plaintiffs from claiming that their NFTs are securities, in exchange for an aggregate settlement fund of $4 million.
Dapper Labs Privacy Lawsuit and Data Sharing Claims
Two separate privacy lawsuits targeted Dapper Labs for how it handled user data on its platforms. Both alleged the company shared personal information without user consent. Dapper Labs, Inc. and NBA Properties Inc. agreed to a $7 million pixel privacy settlement with more than 1.2 million consumers who purchased NBA Top Shots. The lawsuit alleges that Dapper Labs used tracking pixels on its websites to send information about users’ video activity to third-party companies. These pixels, which run invisibly in the background, reportedly shared data about what users watched or purchased, along with identifiers that could be tied back to individual users. The data was allegedly sent to major platforms including Meta, Google, TikTok, Snapchat, Microsoft, X, and Reddit.
The second privacy case, the $5 million VPPA settlement, targets similar conduct but covers all five Dapper platforms, not just NBA Top Shot.
- $7.05M Case: Fan v. NBA Properties Inc. (NBA Top Shot + Facebook users only)
- $5M Case: Ohebshalom v. Dapper Labs, Inc. (all five Dapper platforms)
Key Takeaway: Dapper Labs faces two different privacy lawsuits because its tracking pixel practices allegedly affected users across all of its platforms, not just NBA Top Shot.
NBA Top Shot NFT Securities Lawsuit Background
The securities lawsuit was the first major legal test of whether sports NFTs could be classified as investment contracts under federal law. The dapper development lawsuit originated in May 2021 when a group of investors, led by plaintiff Jeeun Friel, filed a class action in the U.S. District Court for the Southern District of New York (Case No. 1:21-cv-05837-VM), alleging that Dapper Labs and its CEO, Roham Gharegozlou, violated the Securities Act of 1933 and the Securities Exchange Act of 1934. In February 2023, Judge Victor Marrero denied Dapper Labs’ motion to dismiss, ruling that plaintiffs plausibly alleged Moments met the Howey test due to the closed ecosystem and promotional language. Moments are a digital video clip of highlights from NBA games, such as a spectacular dunk or game-winning shot. Dapper Labs creates (or “mints”) a game highlight into an NFT in collaboration with the NBA and NBAPA.
At the peak of the NFT boom, Dapper Labs’ combined market capitalization from sales of Moments on the NBA Top Shot application had reached $1.9 billion by late February 2021. The crash that followed left many collectors holding digital assets worth a fraction of their purchase price. The SEC’s Division of Enforcement was reportedly engaged in an enforcement investigation of Dapper but closed its investigation without recommending an enforcement action in late September 2023.
Dapper Development Lawsuit Timeline
Here is the complete chronological history of the major Dapper Labs legal actions from start to present day.
| Date | Event |
|---|---|
| June 15, 2020 | NBA Top Shot beta launches; class period begins |
| October 2020 | Public launch of NBA Top Shot |
| February 2021 | Moments market cap hits $1.9 billion |
| May 12, 2021 | Securities class action filed (Friel v. Dapper Labs) |
| February 22, 2023 | Judge Marrero denies motion to dismiss |
| September 2023 | SEC closes investigation without charges |
| June 2024 | $4M securities settlement reached |
| October 2024 | Securities settlement approved |
| August 30, 2024 | Securities claim deadline passes |
| January 2025 | $7.05M pixel privacy settlement reached |
| December 2025 | Pixel privacy claims deadline passes |
| December 19, 2025 | $5M VPPA settlement gets preliminary approval |
| March 19, 2026 | Pixel privacy payments distributed |
| April 15, 2026 | VPPA claim deadline and final approval hearing |
The settlement administrator will issue VPPA payments to approved claimants approximately 75 days after the court grants final approval. If approval happens on April 15, expect payments by late June or early July 2026.
Dapper Labs Tracking Pixel Lawsuit Details
Tracking pixels are tiny pieces of code embedded on websites that send data back to third-party companies like Meta and Google. The lawsuit alleges that Dapper Labs used these tracking pixels on its websites to send information about users’ video activity to third-party companies, running invisibly in the background.As a condition of settlement, Dapper Labs has agreed to suspend operation of all six tracking pixels: Meta, Google, Microsoft Bing, Snapchat, X, and TikTok, on any pages of its websites where those pixels would capture the title of a video purchased or viewed by a user.
Imagine someone at a video rental store secretly writing down every movie you rented, then selling that list to advertisers. That is essentially what the plaintiffs alleged happened in the digital space. This suspension is to remain in effect unless and until the VPPA is amended, repealed, or otherwise invalidated by judicial decision as applied to pixel technology, or Dapper Labs is otherwise in compliance with the VPPA.
Tracking Pixels That Were Allegedly Active:
- Meta (Facebook)
- Microsoft Bing
- Snapchat
- X (formerly Twitter)
- TikTok
Key Takeaway: The tracking pixel lawsuits forced Dapper Labs to disable six major advertising and analytics pixels, a meaningful operational change that protects user privacy going forward.
Dapper Labs Settlement Tax Implications
Settlement payments from class actions are generally considered taxable income by the IRS, though the rules depend on the nature of the claim. Payments from privacy violations like the VPPA case may be treated differently than those from securities fraud cases.
For the $4 million securities settlement, payments compensate for investment losses. The IRS typically treats these as reductions in the cost basis of your investment. If you lost money on Moments and receive a small payment back, it may reduce your capital loss rather than create new taxable income.
For the $5 million VPPA and $7.05 million pixel privacy settlements, payments are based on privacy violations, not investment losses. The IRS generally classifies these as “other income” on your tax return. A payment of $5 or less may not trigger a 1099 form from the administrator, but technically it remains reportable.
| Settlement Type | Likely Tax Treatment | Form You May Receive |
|---|---|---|
| Securities ($4M) | Capital loss reduction / cost basis adjustment | 1099-MISC (if over $600) |
| Privacy / VPPA ($5M) | Ordinary income | 1099-MISC (if over $600) |
| Pixel Privacy ($7.05M) | Ordinary income | 1099-MISC (if over $600) |
Because most individual payouts in these cases fall well below $600, many claimants will not receive a tax form at all. Still, the income should be reported on your return.
Is the Dapper Labs Settlement Real?
Yes. All three Dapper Labs settlements are real, court-supervised legal proceedings with official case numbers, appointed judges, and registered settlement administrators. The VPPA settlement received preliminary court approval on December 19, 2025, and class members can submit claims through April 15, 2026. Dapper Labs, the company behind NBA Top Shot, agreed to a $4 million settlement in a class action lawsuit that alleged its NFTs were unregistered securities, with the lawsuit starting in 2021.
The concern about scams is understandable. The crypto and NFT space has been full of fraud. But these cases were filed in real courts with real judges.The Honorable Lisa A. Cairo of the Supreme Court of the State of New York, County of Nassau, is overseeing the VPPA case. The Court has appointed Philip L. Fraietta and Stefan Bogdanovich of Bursor and Fisher, P.A. to be the attorneys representing the settlement class.
How to Verify Legitimacy:
- Check the official settlement administrator phone: 1-888-887-2497
- Confirm the case number: Index No. 615987/2025
- Contact Class Counsel at Bursor and Fisher: 1-646-837-7150
- Look for your Unique ID and PIN in the email settlement notice
If someone contacts you asking for money to “process” your claim, that is a scam. Legitimate class action claims are always free to file.
Frequently Asked Questions
How much money will I get from the Dapper Labs settlement?
It depends on which case you qualify for. For the VPPA settlement, eligible class members who file a valid, timely claim form can receive a cash payment of up to $5. For the securities case, the average approximate recovery is $0.08 per Moment after attorney fee deductions.
What is the deadline to file a Dapper Labs settlement claim in 2026?
April 15, 2026 is the deadline for the $5 million VPPA settlement.All Dapper Labs settlement claim forms must be submitted online or by mail by April 15, 2026.
The $4M securities and $7.05M pixel privacy claim deadlines have already passed.
Who qualifies for the Dapper Labs VPPA settlement?
You are included in the settlement if you held an active account with a Dapper Labs website including NFL All Day, Disney Pinnacle, UFC Strike, NBA Top Shot, and La Liga Golazos from June 15, 2020, through January 30, 2025.
You do not need to have purchased anything; just holding an account qualifies you.
Is the Dapper Labs NBA Top Shot settlement still open?
The $4 million securities settlement is no longer accepting new claims.3 The $4M NFT settlement is in distribution as of April 2026.
The only active claim window is the $5 million VPPA settlement, open until April 15, 2026.
Do I have to pay taxes on my Dapper Labs settlement payment?
Settlement payments are generally considered taxable income by the IRS. Payments under $600 typically do not generate a 1099 form, but you should still report the income. Consult a tax professional for guidance specific to your situation.
The Dapper Labs settlement story in 2026 comes down to one date: April 15, 2026. That is when the VPPA final approval hearing happens, and when your claim must be filed.
Do not leave money on the table. If you had an account on any Dapper Labs platform between 2020 and 2025, check your email for a settlement notice.
File your claim, pick your payment method, and move on. The process takes minutes, and the deadline will not wait.
