The U.S. has brought a class action in the High Court of California against a 3th Professional Basketball League BIG3 NFT holder, alleging several promises made by the Union when it sold NFT in 2022, which was not followed up. At the time of the dispute, the BIG3 was moving forward with the SPAC listing plan.
The lawsuit is for NFT sales.
The plaintiff claimed that BIG3 packaged it as part of the team ' s ownership at the time of the sale of the two tranches of the NFT and promised the holder the right to vote in team affairs, season tickets, VIP treatment and financial participation in the future team ' s sales proceeds.
- “Fire” unit price $25,000
- “Gold” unit price $5,000
- Sales time is 2022
Counsel for the plaintiff claims that these interests were described as having been valid for a long time, but that the actual time for enforcement was short. The petition referred to the relevant marketing expression as “deceptive, fraudulent and illegal marketing” and further asserted that the NFT was an unregistered stock.
The plaintiff claimed that the rights were downgraded.
The complaint stated that the purchaser was originally considered to be the interest holder of the team, but that the actual position was subsequently reduced to that of an ordinary holder. The plaintiff argued that the Union had failed to honour its commitment to participate in the management of the team and to share the proceeds of the subsequent team sale.
According to the petition, the BIG3 sold 4 teams to external investors in 2024, totalling approximately $40 million. The plaintiff claimed that the NFT holder, as one of the early private investors of the Union, should have earned a corresponding interest in these transactions.
Alliance response and listing background
BIG3 has not responded immediately to Decrypt ' s request for an evaluation, but, according to Front Office Reports, the League stated that the plaintiff ignored the agreement in the contract to resolve the dispute through confidential arbitration and instead initiated a public action.
The plaintiff is currently seeking damages, refunds and affirmative relief. Counsel for the plaintiff also stated that the Union had been trying to break down the dispute into individual arbitrations rather than proceeding as a class action.
Additional information:Just last month, the BIG3 announced plans to be listed through a merger with a special-purpose acquisition company, with transactions valued at approximately $290 million to the Alliance. Counsel for the plaintiff states that, in the light of this latest development, it is expected that the proceedings will be supplemented in the future.