Investors of BAYC Take Legal Action
Investors in Bored Ape Yacht Club (BAYC) have sued Yuga Labs and Sotheby’s, alleging misleading promotion of their NFT collection.
Investors of the Bored Ape Yacht Club (BAYC) have launched a class-action lawsuit. They’ve targeted over 40 people and entities, including Yuga Labs, the creators of BAYC, and well-known celebrities like Post Malone, Justin Bieber, and Paris Hilton. The lawsuit accuses these parties of driving up the prices of BAYC’s nonfungible tokens (NFTs) by promoting them.
Sotheby’s Enters the Legal Fray
Sotheby’s, the famous art broker, now finds itself part of this legal tussle. This addition to the lawsuit came after Sotheby’s sold 101 BAYC NFTs in a September 2021 auction, raking in more than $24 million. The investors claim that Sotheby’s actions lent credibility to Yuga Labs and misled them into believing in the authenticity of the NFT collection.
Sotheby’s and Yuga Labs have both responded by denying the allegations. Sotheby’s stated that the claims lack substance, and they stand ready to robustly defend themselves. Additionally, Yuga Labs called the complaint groundless and described it as taking advantage of the situation.
Yuga Labs: No Stranger to Legal Challenges
Earlier in 2023, Yuga Labs settled a different lawsuit with a developer named Thomas Lehman. They accused Lehman of selling a copycat NFT collection called RR/BAYC. Moreover, the resolution included an agreement that prevents Lehman from using any imagery that resembles BAYC or suggesting any connection to Yuga Labs.
This ongoing legal battle between BAYC investors, Yuga Labs, Sotheby’s, and other high-profile individuals shines a spotlight on the complex world of NFTs. It also raises questions about the authenticity and promotion of digital art and investments.
Both Yuga Labs and Sotheby’s remain firm in their stance, showing confidence that they will prevail in court. As the legal proceedings continue to develop, this lawsuit may set a precedent for future cases in the rapidly growing NFT market.