Joseph Gabriel Lajohnsen is news editor
A proposed class action lawsuit has been filed against BIG3 over its NFT ownership program, alleging that buyers are deprived of the rights and royalties associated with team ownership.
The lawsuit was filed in Los Angeles Superior Court against BIG3 and related defendants, as the basketball league seeks a business combination valued at approximately $290 million.
Prosecutors allege that the 3-on-3 professional basketball league, co-founded by O’Shea Jackson Sr., known as Ice Cube, and Jeff Kwatinetz, began selling NFTs in 2022 as a way for fans to become team owners and participate in the league’s growth.
According to the complaint, buyers paid up to $25,000 per NFT. In return, they say they were promised ownership rights, including the power to vote on future team sales and a share of the proceeds from those sales.
The filing claims that BIG3 later sold several teams for approximately US$10 million each. Plaintiffs say NFT holders did not receive the royalties or sale proceeds they expected.
Claims raised
The complaint alleges violations of California securities law, along with fraudulent misrepresentation, concealment, breach of contract, and unjust enrichment. The proposed class seeks damages, damages, and declaratory relief on behalf of purchasers of the BIG3 NFT.
At the heart of the issue is the league’s use of digital tokens as a route to sports ownership. The plaintiffs argue that NFTs were marketed not just as collectibles, but as tools that would confer meaningful governance rights, exclusive benefits to the owner, and an economic interest in future franchise transactions.
The lawsuit alleges that these representations were key to investors’ decisions to buy into the program. He also argues that buyers relied on public statements about equity and future financial involvement when deciding on a large commitment…
