In yet another lawsuit, Adam Titcher of California, and Adonis Real from Florida, have filed a lawsuit against Yuga Labs and crypto fintech firm Moonpay for using celebrities to promote Bored Ape Yacht Club NFT collections.
The recent lawsuit appears just a few months after Yuga Labs, the parent company behind popular NFT collections, such as Bored Ape Yacht Club, Mutant Ape Yacht Club, and Bored Ape Kennel Club, faced another lawsuit over illegal securities offering.
Yuga Labs Faces Lawsuit Over NFT Promotion
Through their Scott+Scott law firm, the plaintiffs tabled a class action lawsuit before the United States Securities and Exchange Commission (SEC), accusing Yuga Labs and MoonPay of misleadingly promoting and selling non-fungible tokens.
Titcher, who purchased a Bored Ape Yacht Club NFT collection, and Real, who previously bought ApeCoin tokens, seek damages worth more than $5 million, which they have attracted following the recent general crypto bear market.
The plaintiffs have alleged that Yuga Labs and Moonpay did not disclose the nature and risk associated with NFTs. They have also alleged that the company needed a way to discreetly pay its celebrity endorsers to make their promotion of the NFTs seem organic.
The Scott+Scotts, the consumer rights litigation firm, has included more than 40 celebrities and companies, including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, Diplo, and more, as defendants.
In the recent lawsuit, the plaintiffs maintained that Yuga Labs contracted a “vast scheme” with “highly connected Hollywood talent agent” Guy Oseary and “front operation” MoonPay to leverage the network of “musicians, athletes, and celebrity clients” to promote and sell the NFTs misleadingly.
Last month, Scott+Scott, the law firm behind the recent Yuga Labs lawsuit, began collecting fresh evidence to determine whether Yuga Labs or its officers, directors, promoters, and corporate insiders might have violated federal securities laws.
Yuga Labs Refutes NFT Promotion Claims
In a short statement, a spokesman for Yuga Labs has refuted strongly over the allegations, describing them as opportunistic and parasitic. The representative added that they believe the accusations are baseless and without merit.
- SEC Paused, But This Law Firm Has Begun Probe On Yuga Labs, Will It Impact Its NFTs
- SEC To Probe Bored Apes’ Creator Yuga Labs over Illegal Offerings
Dash 2 Trade - New Gate.io Listing
- Also Listed on Bitmart, Changelly, LBank, Uniswap
- Collaborative Trading Platform Token
- Featured in Bitcoinist, Cointelegraph
- Solid Proof Audited, CoinSniper KYC Verified
- Trading Community of 70,000+ Members