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U.S. law firm preparing class proceedings against Yuga Labs

Legal

coinnounce.com 25 July 2022 04:58, UTC
  
Reading time: ~2 m

Scott+Scott, a US-based law firm, announced on the 21st that it is preparing a class action proceeding against Yuga Labs, a production studio that handles high-end NFT collections such as “Bored Ape Yacht Club (BAYC).”

So there’s a class action lawsuit against @yugalabs as investors were “inappropriately induced to buy financial products created by Yuga Labs”.

Extremely ridiculous😂 Take responsibility for your own actions people. https://t.co/WeuVVLNGv6 pic.twitter.com/7c9Jywvv9V

— Kevin Wu 🦾🤖🦾 (@kevwuzy) July 24, 2022

 The firm claims that Yuga Labs has improperly solicited investors to buy NFTs (non-fungible tokens) and crypto assets (cryptocurrencies) A Bathing Ape (APE). The company says it is currently preparing to refund the losses caused by the purchase of NFT and the token.

Scott+Scott explained how he came to organize the proceedings in this case:

Yuga Labs management used celebrity promoters and nominations to raise prices for NFTs and tokens, generally advertising growth prospects and changes in huge investment returns to investors.

After selling millions of dollars of fraudulently advertised NFTs, he launched Ape Coin to raise more money from investors. Private investors peaked on April 28, 2010, as it became clear that he touted growth relied on promotion (which is different from actual utility and underlying technology). Let go of tokens that have fallen by more than 87% (price).

At the time of writing, Scott+Scott had not filed a formal complaint in federal court, and the website suffered losses related to Yuga Labs NFTs and tokens between April and June 2010. There is a statement recommending that investors contact the office.


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