The parent company of the Bored Ape Yacht Club, Yuga Labs, is the defendant in the class action lawsuit that has been filed in federal court in California.
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A class action lawsuit accuses the comedian Kevin Hart, tennis champion Serena Williams, and rapper Snoop Dogg, among others who promoted the non-fungible tokens (NFTs) of Bored Ape Yacht Club, of misleading their fans into purchasing the NFTs in order to inflate their value. According to the lawsuit, this ultimately resulted in buyers purchasing “losing investments at drastically inflated prices.”
The parent company of the Bored Ape Yacht Club, Yuga Labs, is the defendant in the class action lawsuit that has been filed in federal court in California. The two plaintiffs, Adonis Real and Adam Titcher, who filed the complaint on December 8 are requesting USD 5 million for themselves and other impacted parties. According to the lawsuit, celebrity talent agent Guy Oseary sought out endorsement deals for the NFTs with athletes Stephen Curry and musician The Weeknd.
Oseary allegedly collaborated with Yuga Labs to use the cryptocurrency company Moonpay to pay celebrities for their endorsements. Yuga Labs said: “In our view, these claims are opportunistic and parasitic. We strongly believe that they are without merit, and look forward to proving as much.”
Late last year, the demand for NFTs had skyrocketed as the elite began to view the digital artworks as a store of value. But over the past 12 months, both the demand for and the cost of NFTs have plummeted. In April, a Bored Ape NFT had a floor price of up to USD 430,000, though it wasn’t unusual for them to sell for more than USD $1 million. The floor price, which is an item’s lowest cost, is currently closer to USD 86,000.
