Celebrities Are Getting Sued Over NFT Endorsements

Just weeks after celebrities like Larry David, Tom Brady, Gisele Bündchen, and Stephen Curry were sued for endorsing the failed crypto exchange FTX, a new list of celebrities are facing a class-action lawsuit, this time for endorsing Bored Ape.

The suit alleges that over 40 celebrities and companies including the likes of Gwyneth Paltrow, Jimmy Fallon, Paris Hilton (remember this?), DJ Khaled, Justin Bieber, Post Malone, Snoop Dogg, Madonna, and Serena Williams “schemed” with Bored Ape’s parent company Yuga Labs to “misleadingly promote and sell” the NFTs, in result defrauding the fans who ended up investing.

At the center of the complaint with Yuga Labs is Guy Oseary, manager of Madonna, the Red Hot Chili Peppers, and U2, who signed to represent the company in 2021. He is also an investor in Moonpay, the crypto payment platform used for many of the celebrities’ NFT payments, which has also been named in the lawsuit. 

The two plaintiffs who brought the case are saying that Oseary recruited celebrities he had relationships with to endorse Bored Ape, for which Yuga Labs paid them via Moonpay. The celebrities then promoted the NFTs without disclosing the arrangement.

“In our view, these claims are opportunistic and parasitic,” said a Yuga Labs spokesperson in a statement. “We strongly believe that they are without merit, and look forward to proving as much.”

The suit, which was filed in a Los Angeles federal district court on December 8, indicates that the plaintiffs are seeking an award of at least US$5 million for themselves and others who were affected. 

Bored Ape Yacht Club NFTs peaked in April with a floor price of $430,000. The value, indicative of the NFT landscape, is now down to $86,000.

November saw total NFT sales drop to $9.7 million, compared to the May 1 peak of $809.4 million.

Information for this briefing was found via Mashable, CoinDesk, Deadline, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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