Adidas, Paris Hilton and more celebrities sued for ‘misleading’ Bored Ape NFT promotions

Adidas, Paris Hilton and more celebrities sued for 'misleading' Bored Ape NFT promotions 3e36fd94c256f99581d5ba0cc654770e

Adidas and a bunch of celebrities, including Paris Hilton, Stephen Curry and Serena Williams, have been named in a class action lawsuit over their promotion of Yuga Labs NFT and digital currencies, including their flagship NFT Bored Ape Yacht Club (BAYC) collection.

The suit, which was archived on Thursday in the US District Court for the Central District of California, representing investors who were affected by the purchase of Yuga NFT and its native token, ApeCoin, between April 23, 2021 and December 1, 2021. 8, 2022. The lawsuit seeks more than $5 million for the affected class.

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To attract investors, Yuga allegedly used celebrities to “mispromote” his NFTs, making these celebrity promotions appear organic and unpaid. According to the lawsuit, Yuga also misrepresented its prospects for growth, financial ownership, and financial benefits to investors.

“In our opinion, these claims are opportunistic and parasitic,” a Yuga Labs spokesperson told FN. “We strongly believe they are without merit and look forward to proving it.”

Regarding Adidas, the lawsuit claims that the sportswear company acted as Yuga’s “direct or indirect agent and spokesperson” given its equity investment in the company, and authorized “applications for Yuga’s securities to the public.” Last December, Adidas launched its first Collaborative NFT Collection with Bored Ape Yacht Club.

FN has reached out to Adidas for comment, as well as other people named in the lawsuit.

These promotions helped “artificially increase the interest and price of BAYC NFTs,” the lawsuit alleged, causing investors to buy these assets at “drastically inflated prices.”

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ApeCoin hit a new low of $2.70 per token in November, marking a 90% drop from its high when investors bought the coin. The collection of NFTs, including BAYC, also dropped dramatically in value.

“The company presents the Bored Ape ecosystem as a brand that is organically loved by some of the most famous celebrities in the world,” the lawsuit reads. “But the truth is that the company’s entire business model is based on the use of insidious promotional and marketing activities of highly compensated A-list celebrities (without disclosing it), to increase demand for Yuga securities by convince potential retail investors that the price of these digital assets would appreciate and that, as members of the ‘club’, these investors would have exclusive access to additional financial products and benefits.”

In October, kim kardashian ran into a similar legal problem with the Securities and Exchange Commission after she posted about a crypto asset security without saying that he had received a payment to promote it. kardashian it was ordered to pay $1.26 million in penalties, restitution and interest in an agreement to settle the charges, the SEC said.

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