Yuga Labs Could Face Class Action Over Bored Ape NFTs and ApeCoin
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Yuga Labs Could Face Class Action Over Bored Ape NFTs and ApeCoin

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4 months ago

The Scott+Scott law firm is currently inviting individual investors who want to "seek restitution for losses" related to the firm's tokens and NFTs.

Yuga Labs Could Face Class Action Over Bored Ape NFTs and ApeCoin

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A class action lawsuit has been proposed against Yuga Labs, the company behind Bored Ape Yacht Club.

The Scott+Scott law firm is currently inviting individual investors who want to "seek restitution for losses" related to the firm's tokens and NFTs.

Attorneys claim investors were "inappropriately induced" to buy financial products — including Bored Apes, and an offshoot token called ApeCoin.

The company has been accused of using "celebrity promoters and endorsements" to inflate prices — highlighting the potential "for huge returns on investment to unsuspecting investors."

But while a number of A-listers do own Bored Apes, Scott+Scott has not provided concrete examples of where such stars touted the investment performance of these NFTs.

A news release goes on to claim that ApeCoin was then launched "to further fleece investors" — but "touted growth was entirely dependent on continued promotion." It's also alleged this digital asset lacks actual utility or underlying technology that makes it special, adding:

"Retail investors were left with tokens that had lost over 87% from the inflated price high on April 28, 2022."

Ridicule on Social Media

The proposed class action has been criticized on Crypto Twitter. Some have dismissed it as "extremely ridiculous" — adding that investors need to take responsibility for their own actions.

Legal hurdles that Scott+Scott may face could include proving that these non-fungible tokens, and ApeCoin, are actually unregistered securities — a classification that has gotten initial coin offerings into hot water before.

The latest figures from CoinMarketCap show ApeCoin has fallen by 84% since hitting an all-time high of $39.40 since March 17.

Yuga Labs is yet to comment publicly on Scott+Scott's plans, which remain at an early stage given how court filings are yet to be submitted.

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