Yuga Labs Faces Class Action Lawsuit!

Yuga Labs will be accused of improperly inducing investors into financial products created by Yuga. In short, it faces a potential class action lawsuit for improperly inducing investors to purchase Ape Coin and Bored Ape Yacht Club NFTs. Law firm Scott+Scott alleges that Yuga promised investors tremendous returns on investment. For this reason, the firm has indicated that it plans to file a class action lawsuit against Yuga Labs. The firm also noted that Yuga used celebrity endorsers to artificially inflate the price of its NFTs and tokens.

The company has not yet filed a formal complaint with the court. However, Scott+Scott continues to collect petitioners who suffered losses in connection with the purchase of Yuga-backed NFTs and tokens between April and June. A class action lawsuit is planned to be filed with the collected claims. The central allegation in the case is that Yuga misrepresented Bored Ape NFTs and Apecoin as securities with guaranteed returns, when in fact they have lost value over the past three months. The Court's decision on whether the NFTs are securities will be important for the success of the case after the trial. If the court characterizes the BAYC NFTs as securities, it will be a big danger for the company. In the event of such a ruling, Yuga Labs would be in violation of the registration requirements for offering securities. The SEC has not yet officially classified any NFTs as securities. If sued, Scott+Scott would have to prove that Yuga and celebrities did not engage in paid advertising as required by law. With the lawsuit, the SEC will decide whether it considers NFTs and management tokens like Apecoin to be securities.

Lawsuits Don't End at Yuga Labs!

Last month, Yuga Labs sued Ryder Ripps, an artist. Ryder Ripps claimed that the RR/BAYC NFTs were a stolen collection by Yuga Labs. He was also accused of trying to devalue the original BAYC NFTs. Additionally, a few days ago, Yuga filed a trademark complaint against the original Otherside creator. The team asked the creator Alberto Herrera to remove all references to it from his website.   Kaynak: nfxhaber.com