Yuga Labs to Receive New Class Action Lawsuit from Investors
2023.01.31 09:39
Yuga Labs to Receive New Class Action Lawsuit from Investors
By Tiffany Smith
Budrigannews.com – Yuga Labs, a troubled cryptocurrency fintech, is about to face more lawsuits over its Bored Ape Yacht Club (BAYC) collection of nonfungible tokens (NFTs).
On January 30, the global law firm Rosen Law Firm made the announcement that it intends to bring a class action lawsuit against Yuga Labs. Their practice is centered on safeguarding investor rights.
By the lead plaintiff deadline, which was set for February 7, Rosen invited purchasers of Yuga securities, such as BAYC NFTs and the native token ApeCoin (APE), to join the class action against Yuga.
The law firm emphasized that investors in Yuga securities who purchased BAYC and APE between April 23, 2021, and December 8, 2022 may be eligible for compensation through a contingency fee arrangement without having to pay any additional costs.
Numerous defendants are the focus of the new case, including Yuga Labs co-founder Wylie Aronow, who took a leave of absence from work on January 28 due to health issues. In addition, the case will be brought against co-founder Greg Solano, billionaire BAYC founder Kerem Atalay, Yuga Labs CEO Nicole Muniz, Madonna, and companies like Adidas and Moonpay.
Another attempt to hold Yuga Labs accountable for the enormous losses suffered by NFT investors who purchased BAYC and APE over the past few years is the latest lawsuit. After reaching $312,000 in April 2022, the average transaction value of BAYC NFTs fell below $85,000 by October 2022. At the time of writing, the floor price of BAYC NFTs also fell from around 144 Ether (ETH), or $226,000, to 64 ETH, or $100,000.
In December 2022, American plaintiffs Adonis Real and Adam Titcher filed a similar lawsuit against Yuga Labs. The complaint, like Rosen’s class action, named over forty individuals and businesses as defendants, including Madonna, Justin Bieber, Paris Hilton, Snoop Dog, Jimmy Fallon, Post Malone, and others.
In the past, in June 2022, the law firm Scott+Scott filed a class action lawsuit against Yuga Labs, claiming that the company “inappropriately induced” the community to purchase ApeCoin and BAYC NFTs.
Additionally, Yuga Labs, a Miami-based company, has been involved in trademark and copyright disputes. Yuga Labs filed a lawsuit against artist Ryder Ripps in a Los Angeles court in June, claiming that Ripps used Yuga Labs’ trademarks to promote his own NFT collection. In a subsequent court filing, it was suggested that Yuga Labs did not register for BAYC’s copyright.
According to the filing, “Yuga Labs does not have a registered copyright, and as a result, there is no imminent threat of a lawsuit for copyright infringement.”
Yuga Labs has been taking steps to expand its NFT ecosystem despite numerous challenges. Yuga Labs released its new Dookey Dash game on January 18, a skill-based minting experience in which BAYC investors can claim free tokens to compete for new perks and the highest score.
