A class action lawsuit names Adidas and a number of celebrities, like Paris Hilton, Stephen Curry, and Serena Williams, for promoting digital currencies and NFTs from Yuga Labs, like the Bored Ape Yacht Club NFT collection (BAYC).
The claim, which was filed Thursday in the US District Court for the Central District of California, represents investors who were banned from purchasing Yuga NFTs and its native token, AppCoin, between April 23, 2021, and December 8, 2022. were impressed. Seeks more than $5 million for the affected class.
To encourage investors, Yuga allegedly employed celebrities to “deceptively promote” its NFTs, making these celebrity endorsements appear organic and unpaid. According to the complaint, Era misrepresented to investors its development forecasts, financial ownership, and financial rewards.
Concerning Adidas, the suit says that the sportswear firm functioned as an “agent and direct or indirect spokesperson” for Yuga, provided its capital investment in the company, and approved the “requests of Yuga securities to the public.” Adidas released its first NFT collection in conjunction with Bored Ape Yacht Club in December 2013.
FN has requested comment from Adidas and the other parties implicated in the lawsuit.
“In our view, these claims are opportunistic and parasitic,” a Yuga Labs spokesperson told FN. “We strongly believe that they are without merit and look forward to proving as much.”
According to the lawsuit, this marketing helped “artificially raise the interest and value of the BAYC NFTs,” enabling investors to purchase these assets at “grossly inflated prices.”
ApeCoin hit a new low of $2.70 per token in November, representing a 90% loss from its height when investors were buying the coin. The value of NFT collectibles, notably BAYC, also decreased drastically.
“The company represents the Bored Apps ecosystem as a brand that is organically beloved by some of the most famous personalities in the world.” However, the company’s whole business strategy relies on leveraging deceptive marketing and promotional efforts from highly rewarded A-list celebrities to convince potential retail investors to purchase Yuga securities” (Without disclosure). These digital assets will appreciate, and as “club” members, these investors will have access to additional financial products and perks.
Source NFT Newspro