BIG3 NFT Buyers Sue Over Alleged Unfulfilled Ownership Rights

Owners of BIG3 non-fungible tokens filed a class-action lawsuit in the Superior Court of California in July, alleging the league did not deliver team ownership rights and other benefits it promised when it sold the tokens in 2022. Plaintiffs’ attorneys publicized the complaint this week.

The complaint says hundreds of purchasers paid up to $25,000 for Ethereum-based NFTs in two tiers: “Fire” tokens at $25,000 and “Gold” tokens at $5,000. Buyers expected team management input, season tickets, voting rights and a share of proceeds if teams were sold, the suit states.

The legal filing alleges the league engaged in “deceptive, fraudulent, and illegal marketing” and that the NFTs were offered and sold as unregistered securities. Plaintiffs are seeking class certification, damages, restitution, declaratory relief and other remedies.

According to the complaint, BIG3 sold ownership rights to private investors through NFTs two years before the league completed its first outside team sales. In 2024 the league sold four teams to outside investors for about $40 million. Plaintiffs contend those sales were funded in part by capital from NFT holders and that NFT purchasers were denied contractual rights to participate in the profits from those transactions.

BIG3 has told the plaintiffs it prefers to resolve disputes through confidential individual arbitration, and a league representative indicated the public suit disregards those contractual obligations. Plaintiffs’ counsel has said it may seek to amend the complaint in light of recent developments.

The league announced plans to go public through a merger with a special purpose acquisition company that would value BIG3 at about $290 million. Plaintiffs’ attorneys say the planned transaction could prompt additions to the lawsuit to address the pending deal.

Joseph Sakai, the plaintiffs’ attorney, described the case as “promises made to investors who are also the league’s most loyal fans.” He added that clients invested substantial sums based on representations of lasting ownership rights that included team management decisions, season tickets and financial participation in future team sales.

At the time of the 2022 sale, Ice Cube described the offering as “a great way for the fans to be owners” and said he was “all about changing the game and shifting the paradigm.” The complaint cites those promotional statements as part of the basis for investors’ purchases.

The suit asserts BIG3 has treated NFT purchasers like common ticket holders rather than owners and has prevented them from exercising the management and financial rights they were promised “forever.” The league did not provide further comment on the litigation when asked.