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A group of four investors who invested in the popular NFT collection Bored Ape Yacht Club (BAYC) has filed a class action suit against the project\u2019s creator, Yuga Labs, and 29 other companies for misleadingly promoting the collectibles as their prices continue to tumble.<\/p>\n
According to a CNN report<\/a>, other defendants mentioned in the lawsuit include art auction corporation Sotheby\u2019s Holdings, sportswear giant Adidas, crypto payments firm MoonPay, and celebrities like Canadian singer Justin Bieber and American media personality Paris Hilton.<\/p>\n The plaintiffs accused Sotheby\u2019s of conniving with Yuga Labs to artificially inflate the prices of the BAYC NFTs. They described Sotheby\u2019s 2021 sale of 100 collectibles to a single buyer for over $24 million as deceptive, arguing that Yuga Labs had recruited the auction house to ramp up hype and investors\u2019 interest in the collection.<\/p>\n Bieber and Hilton, on the other hand, were accused of promoting BAYC without revealing their financial benefits from the project. Hilton\u2019s representatives allegedly faked interest in the collectibles<\/a> for financial gain.<\/p>\n Adidas allegedly conspired to artificially inflate the NFT prices via a scheme, and MoonPay was accused of engaging in market manipulation. The investors claimed that Yuga Labs secretly used MoonPay to settle their \u201ccelebrity cohorts\u201d and, in turn, made interest in the BAYC collection seem organic rather than the result of a paid promotion.<\/p>\n In response to the class suit, a spokesperson for Yuga Labs said the allegations were \u201cwithout merit or factual basis.\u201d Since the lawsuit is an amended version of a complaint lodged in December, the representative said it is \u201copportunistic,\u201d just like the previous one.<\/p>\n \u201cAs a media and technology company, Yuga Labs has empowered strong communities of enthusiasts and entrepreneurs to innovate, connect, and build. Their creativity has fostered community-driven projects that have captured the imagination of people around the world. That\u2019s the story worth telling,\u201d the spokesperson said.<\/p>\n<\/blockquote>\n Sotheby\u2019s called the allegations in the lawsuit baseless and revealed that it is prepared to defend itself in court.<\/p>\n The plaintiffs seek a jury trial and more than $5 million in damages.<\/p>\n Meanwhile, the prices of BAYC NFTs, once at their peak during the 2021 hype, have plummeted significantly in the past year. At writing time, the collection had a floor price of 25 ether ($42,700), down over 66% from a year ago, per data<\/a> from CoinGecko.<\/p>\nBAYC Investors Sue Yuga Labs and Others<\/h2>\n
Yuga Labs, Sotheby\u2019s Refute Allegations<\/h2>\n
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