Over 40 people and companies have been named defendants in the class action lawsuit. Among them are Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber and Madonna. Yuga Labs, the company behind Bored Ape Yacht Club (BAYC) and crypto fintech Moonpay, is facing a class action lawsuit for allegedly using celebrities to promote and sell NFTs misleadingly.
Over 40 individuals and companies are named defendants, including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, and Diplo. The class action lawsuit was filed Dec. 8 in a California court by John T. Jasnoch of Scott+Scott Attorneys at Law LLP. It alleges that the crypto companies used their Hollywood network to promote digital assets without complying with disclosure regulations. The document states:
“This case is a prime example of these concerns, as the scheme involved a blockchain startup company, namely Yuga Labs, Inc. (‘Yuga’), a high-profile Hollywood talent broker (Defendant Guy Oseary), and a sham company (MoonPay), who joined together to promote and sell several digital assets.”
According to the lawsuit, Yuga Labs executives and Oseary devised a scheme to leverage a vast network of top musicians, athletes, and celebrity clients to give investors the impression that they could “join the club” through Yuga’s NFT collection.
“The exclusivity of BAYC membership was based solely on bringing on board very influential celebrities to promote it. But this alleged interest in and promotion of the BAYC NFTs by high-profile influencers was manufactured by Oseary at the behest of the corporate defendant,” it added.