BIG3 basketball league faces class action lawsuit over alleged fraud in NFT sales

According to a report by Decrypt, NFT buyers of the BIG3 basketball league have filed a class action lawsuit in a California court, alleging that the league engaged in false and fraudulent marketing through Ethereum NFT sales in 2022. The Fire tier was priced at $25,000, and the Gold tier at $5,000. BIG3 promised holders “permanent” rights including team ownership, voting rights, season tickets, and a share of future profits, but these promises were not fulfilled. In 2024, BIG3 sold four teams to external investors for around $40 million. The lawsuit claims that part of the proceeds from these sales should belong to NFT holders who were early private investors.