Dapper Labs, the creator of the once highly-popular NBA Top Shot Moments NFT collection, announced on Monday it had settled a class-action lawsuit alleging the company violated securities laws by improperly selling the digital collectibles.

According to a court document provided by Dapper Labs, the company agreed to settle the lawsuit for $4 million. The money will be allocated to a settlement fund which will be made available to qualifying claimants, the document also said.

"The settlement in the Friel vs. Dapper Labs case further asserts Dapper Labs’ conviction that NBA Top Shot Moments are not securities under federal law," the Dapper Labs said in a statement.

Dapper Labs successfully settling the case represents a bit of a twist considering last year the judge overseeing the case …