Yuga Labs Reportedly Faces Class Action Lawsuit Over This Reason

A law firm is planning to sue BAYC NFT creator Yuga Labs.

Law firm Scott+Scott is planning to file a class action lawsuit against Yuga Labs over its NFT collection.

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According to the law firm, Yuga Labs falsely promoted Bored Ape NFTs and ApeCoin as securities with guaranteed returns.

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The value of these NFT collections have plummeted over the last few months.

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Investors of the tokens have not yet filed an official complaint in a federal court.

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The US SEC does not categorize NFTs as security currently.

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“After selling off millions of dollars of fraudulently promoted NFTs, YUGA LABS launched the Ape Coin to further fleece investors,” the law firm alleged.

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If the court declares BAYC NFTs as securities, it could open a floodgate of lawsuits for NFT companies.

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