According to the international law firm Scott+Scott’s website, there’s a possibility that the non-fungible token (NFT) company Yuga Labs may be threatened with a class action lawsuit for generally promoting “the growth prospects and change for huge returns on investment to unsuspecting investors.”
Law Firm Seeks Investors Who “Suffered Losses” From Yuga Labs Products
The law firm Scott+Scott details that the NFT company Yuga Labs is accused of using “celebrity promoters and endorsements to inflate the price of the company’s NFTs and token.” However, at the time of writing, current court records show no official class-action case against Yuga Labs has been filed.
Scott+Scott’s website says the firm is currently seeking investors who “suffered losses in association with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022.” The token named in the accusations against Yuga Labs is apecoin (APE), a crypto asset associated with the Bored Ape Yacht Club (BAYC) and Otherside metaverse project.
“After selling off millions of dollars of fraudulently promoted NFTs, Yuga Labs launched the Ape Coin to further fleece investors,” the Scott+Scott web page says. “Once it was revealed that the touted growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology) retail investors were left with tokens that had lost over 87% from the inflated price high 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 brought by law firm Scott+Scott, to seek restitution for losses incurred from the purchase of Yuga Labs tokens and NFTs. Scott+Scott is available to help you if you have suffered any losses as a result of the Yuga Labs tokens and NFTs purchases between April 2022 – June 2022.
Scott+Scott Is Involved in 6 Different Crypto Cases — Boutique Law Firms Flock to the Blockchain Industry
Scott+Scott has extensive experience in complex and diverse legal proceedings throughout Europe and America. Scott+Scott handles securities litigation with high-profile companies like Edison International and General Mills.
Scott+Scott’s website notes that the legal firm is involved with a number of “crypto cases.” Other crypto legal matters involve crypto companies and projects like Celsius, Ethermax, Safemoon, Solana Labs, Terra, and the final crypto case listed is Yuga Labs.
Yuga Labs has not mentioned the accusations stemming from Scott+Scott’s web portal and the last tweet the company made discussed a threat to the NFT community. “Our security team has been tracking a persistent threat group that targets the NFT community,” Yuga Labs tweetedApril 18, 2022. “We believe that they may soon be launching a coordinated attack targeting multiple communities via compromised social media accounts. Please be vigilant and stay safe.”
In the cryptocurrency industry, there have been many boutique law firms that specialize in complex legal issues that use blockchain technology over the past few years. These law firms take on many litigation cases that are related to cryptocurrencies, as well as alleged unregistered securities.
Roche Freedman LLP is another firm that has a variety of crypto cases under the law firm’s wing, and the partners Kyle Roche and Devin “Velvel” Freedman are well known for the court case that involved Craig Wright. Similar to Scott+Scott, Roche Freedman is also involved in a case that’s been filed against the bankrupt crypto lender Celsius.
Do you have any concerns about Yuga Labs being sued over the use of apecoin or BAYC NFTs in their products? Please comment below to let us know your thoughts on this topic.
Images CreditsShutterstock. Pixabay. Wiki commons. BAYC NFTs.
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