Rosen Law Firm, a global law firm focused on investor rights’ protection, continues its efforts to become the lead firm for the class-action lawsuit against the cryptocurrency fintech Yuga Labs.
On Jan. 30, Rosen reiterated that investors that purchased non-fungible tokens (NFT) from Yuga Labs’ Bored Ape Yacht Club (BAYC) collection as well as the native token ApeCoin (APE) can join the securities class-action suit against the firm.
Filed in December, Rosen’s lawsuit accuses BAYC creators of violating the United States securities laws by misleading investors about financial benefits for Yuga securities investors, as well as using celebrity promoters to lure in more investors. The law firm stressed that Yuga securities investors can join the action against Yuga by the lead plaintiff deadline set for Feb. 7.
Rosen emphasized that Yuga securities’ investors that bought BAYC and APE between April 23, 2021 and Dec. 8, 2022, may be entitled to compensation without payment of any additional costs through a contingency fee arrangement.
The action by Rosen is apparently an effort to take control of an already existing similar case against Yuga. Previously, law firm Scott+Scott filed a similar class-action lawsuit against Yuga Labs in July 2022. The lawyers argued that Yuga “inappropriately induced” the community to buy BAYC NFTs and ApeCoin.
Similarly to the case brought by Scott+Scott, Rosen’s filing targets a large number of defendants, including Yuga Labs co-founder Wylie Aronow, who took a leave from the office on Jan. 28, citing health problems. The case will also be against co-founder Greg Solano, billionaire BAYC founder Kerem Atalay, Yuga Labs CEO Nicole Muniz as well as some world-known celebrities including Madonna and firms like Adidas and Moonpay.
Yuga Labs also faced a similar lawsuit from American plaintiffs Adonis Real and Adam Titcher in December 2022. Similarly to Rosen’s class action, the complaint listed more than 40 people and companies as defendants, including Madonna, Justin Bieber, Paris Hilton, Snoop Dog, Jimmy Fallon, Post Malone and others.
The action originally initiated by Scott+Scott aims to hold Yuga Labs accountable for massive losses by NFT investors who bought BAYC and APE over the past few years. By October 2022, the average transaction value of BAYC NFTs plummeted below $85,000 after reaching $312,000 in April 2022. The floor price of BAYC NFTs also tumbled from around 144 Ether (ETH), or $226,000, to 64 ETH ($100,000) at the time of writing.
BAYC NFT price chart. Source: NFT Price Floor
Yuga Labs, a Miami-based company, has been additionally involved in some disputes concerning trademark and copyright issues. In June, Yuga Labs filed a lawsuit in a Los Angeles court against artist Ryder Ripps, claiming that he used Yuga Labs’ trademarks to promote his own NFT collection. A subsequent court filing suggested that Yuga Labs lacked copyright registration for BAYC.
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“Yuga Labs does not have a registered copyright, and there is therefore no imminent threat of a lawsuit for copyright infringement,” the filing stated.
Despite facing a lot of issues, Yuga Labs has been taking measures to expand its NFT ecosystem. On Jan. 18, Yuga Labs launched its new Dookey Dash game, a skill-based minting experience allowing BAYC investors to claim free tokens in order to compete for the highest score and earn new perks.
Disclaimer: This article was corrected to reflect multiple class-action filings against Yuga Labs, with the action originally submitted by the law firm Scott+Scott.
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