Yuga Labs, Moonpay faces lawsuit over celebrities NFT promotion

cointelegraph.com:

Yuga Labs, creators of Bored Ape Yacht Club (BAYC) and crypto fintech Moonpay are facing a class-action lawsuit for allegedly using celebrities to misleadingly promote and sell nonfungible tokens (NFTs). 

Over 40 people and companies are named as defendants in the lawsuit, including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, and Diplo. The class-action was filed on Dec. 8 by John T. Jasnoch of Scott+Scott Attorneys at Law LLP in the Central District of California and claims the crypto companies used its Hollywood network to promote the digital assets without complying with disclosure requirements. The document states:

According to the lawsuit, executives at Yuga Labs and Oseary created a plan to leverage a vast network of A-list musicians, athletes, and celebrity clients, aiming to bring to investors the perception of “joining the club” through Yuga’s flagship NFT collection.

"The exclusiveness of BAYC membership was entirely based on the inclusion and endorsements of highly influential celebrities. But this purported interest in, and endorsement of, the BAYC NFTs by high-profile taste makers was entirely manufactured by Oseary at the behest of the Executive Defendants.", alleges the suit.

Related: Yuga Labs acquires Beeple’s 10KTF game, hints at metaverse integration

The two plaintiffs in the case Adonis Real and Adam Titcher purchased Yuga Labs NFTs collections between April 2021 to the present. The class-action also refers to a previously United States Securities and Exchange Commission (SEC) statement about celebrities endorsements, claiming "these endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or