Law firm Scott + Scott has filed a class-action lawsuit against nearly 40 people and companies, including Yuga Labs and MoonPay, for promoting misleading ads.
The lawsuit was filed in the U.S. District Court for the Central District of California on behalf of investors who acquired NFT Yuga Labs, including Bored Ape Yacht Club (BAYC) and ApeCoin.
Lawyers for Scott + Scott said that Yuga Labs and Hollywood talent agent Guy Oseary have developed a joint plan to use their “extensive network of high-profile musicians, athletes, and celebrity clients and partners” for the questionable practice of social media promotion of financial Yuga products.
The class-action lawsuit alleges that positive celebrity reviews of Bored Ape NFTs and ApeCoin tokens resulted in financial losses for investors.
“The sale of digital assets such as NFTs requires disclosure, just like any other financial product. However, the exclusivity of BAYC membership relies entirely on the support of highly influential celebrities,” the lawsuit states.
In total, 37 defendants appear in the lawsuit, including the founders and management of Yuga Labs, MoonPay and its CEO Ivan Soto-Wright; Reddit co-founder and investor Alexis Ohanian, Ape DAO board member Amy Wu, Guy Oseary, Madonna, Paris Hilton, Snoop Dogg and others.
Earlier, Dogecoin co-founder Billy Markus criticized the launch of the ApeCoin token by the popular project Bored Ape Yacht Club. He tweeted that market speculation with ApeCoin in the NFT space is toxic.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
