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According to the international law firm Scott+Scott’s website, there is a possibility that the company Yuga Labs (non-fungible token) could be threatened with a class action for generally promoting “the growth prospects and change for large returns on investment to unsuspecting investors.”
Law firm Scott+Scott says NFT company Yuga Labs is accused of using “celebrity promoters and endorsements to increase the price of the company’s NFTs and token.” However, at the time of writing, current court documents show that no official class action lawsuit has been filed against Yuga Labs.
Scott+Scott’s website says the firm is currently seeking investors who “suffered losses in connection with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022.” The token named in the charges against Yuga Labs is apecoin (APE), a crypto-asset linked to Bored Ape Yacht Club (BAYC) and the Otherside metaverse project.
“After selling millions of dollars of falsely promoted NFTs, Yuga Labs launched Ape Coin to further fleece investors,” the Scott+Scott website states. “When it was revealed that the assumed growth was entirely dependent on continued marketing (as opposed to actual utility or underlying technology), retail investors were left with tokens that had lost over 87% from their high price on April 28, 2022.” The law firm’s website adds:
As a result, Yuga Labs’ individual investors are now joining together through a class action lawsuit filed by the law firm Scott+Scott, seeking compensation for losses incurred from the purchase of Yuga Labs tokens and NFTs. If you suffered a loss in connection with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022, you are encouraged to contact Scott+Scott to learn more about your legal rights.
The law firm Scott+Scott covers many different legal cases and complex legal cases in Europe and the USA. Scott+Scott is involved in securities litigation involving high-profile names such as Edison International, General Mills, Intuit, Roblox Corporation, Tesla, Transunion and Twitter.
Scott+Scott’s website notes that the law firm is involved in a number of “crypto cases.” Other crypto legal cases involve crypto companies and projects such as Celsius, Ethermax, Safemoon, Solana Labs, Terra, and the final crypto case listed is Yuga Labs.
Yuga Labs has not mentioned the allegations originating from Scott+Scott’s web portal, and the last tweet the company made discussed a threat to the NFT community. “Our security team has tracked a persistent threat group targeting the NFT community,” Yuga Labs tweeted on July 18, 2022. “We believe that they may soon launch a coordinated attack targeting multiple communities via compromised social media accounts. Be alert and be safe.”
Over the past few years, law firms that focus on complex legal issues involving blockchain technology have been more prominent in the crypto industry. Like Scott+Scott, a number of these law firms take on many lawsuits involving cryptocurrencies and alleged unregistered securities.
Roche Freedman LLP is another firm that has a number of crypto cases under its wing, and partners Kyle Roche and Devin “Velvel” Freedman are known for the litigation involving Craig Wright. Like Scott+Scott, Roche Freedman is also involved in a case filed against the bankrupt crypto-lender Celsius.
What do you think about Yuga Labs facing a potential lawsuit over apecoin and BAYC NFTs? Let us know what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, BAYC NFTs
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