Justin Bieber, Serena Williams, Madonna and Other Celebs Named in Class-Action Lawsuit Against NFT Company
The firm behind Bored Ape Yacht Club NFTs is being sued for not disclosing celebrities’ involvement. The lawsuit alleged that Yuga Labs manufactured celebrity endorsements and misleading promotions.
A class-action lawsuit has been filed against Yugo Labs, the company behind Bored Ape Yacht Club, on behalf of investors who claim it failed to disclose the alleged involvement of celebrities in promoting and selling NFTs, court papers show.
The lawsuit claimed that stars including Justin Bieber, Serena Williams, and Madonna promoted Bored Ape misleadingly.
Plaintiffs Adonis Real and Adam Titcher have been investing in YugoLabs NFTs since April 2021, per the court documents.
Dozens of other celebrities are named as defendants in the suit for their involvement in “Promoting and selling a suite of digital assets,” the court papers stated, including Gwyneth Paltrow, Paris Hilton, Jimmy Fallon, Kevin Hart, DJ Khaled, and Steph Curry.
The unique selling point of Yuga Labs’ NFT collection, called the Bored Ape Yacht Club, is that NFT owners become members of an exclusive “Club” that included these celebrities.
The documents also cited that “MoonPay purports to be a white-glove service designed to help the super-rich and celebrities buy NFTs ‘without all the hassle of setting up a wallet, buying crypto, using that crypto to purchase an NFT, and then taking custody of it’.”
“In truth, the Executive Defendants and Oseary used their connections to MoonPay and its service as a covert way to compensate the Promoter Defendants for their promotions of the BAYC NFTs without disclosing it to unsuspecting investors,” according to the lawsuit.
“The executives at Yuga and Oseary together devised a plan to leverage their vast network of A-list musicians, athletes, and celebrity clients and associates to misleadingly promote and sell the Yuga Financial Products,” the documents stated.
Bored Ape, which comprises more than 10,000 NFTs depicting cartoon monkeys wearing different outfits, is one of the most successful NFT art collections, valued at more than $1 billion.
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More on the case:
https://www.businessinsider.com/celebrities-named-lawsuit-against-company-behind-bored-ape-nfts-2022-12