Yuga Labs, a struggling crypto fintech, is on the verge of receiving more lawsuits over its NFT collection, such as BAYC (Bored Ape Yacht Club).
Law Firm Gives BAYC And ApeCoin Buyers Until February 7th To Join
On January 30th, an international law firm, Rosen Law Firm, revealed that it wants to launch a lawsuit against the crypto firm Yuga Labs. Meanwhile, Rosen has asked those who bought ApeCoin (Yuga Labs native token) and BAYC to be part of the class action on or before February 7th.
According to the lawsuit, investors who bought APE and BAYC between April 23rd, 2021, and December 8th, 2022, might get compensation without paying any extra costs. Meanwhile, the new lawsuit will target many defendants, including Wylie Aronow, the co-founder of Yuga Labs.
Aronow recently took a leave on January 28th, citing health issues. Other defendants that will be part of the lawsuit include Nicole Muniz (the CEO of Yuga Labs), Kerem Atalay (the founder of BAYC), and Greg Solano (the co-founder of Yuga Labs).
In addition, celebrities who took part in promoting the assets, such as Madonna and companies like MoonPay and Adidas, will be included. Furthermore, the latest lawsuit is another effort to ensure that those who bought ApeCoin and BAYC during the hype and made losses receive proper compensation from the company.
As of October 2022, BAYC NFT’s average transaction value dropped below $85,000 after it reached a peak of $312,000 in April. Similarly, the floor price of the NFTs has dropped from about 144 to just 64 ETH.
Yuga Labs Faced Numerous Lawsuits In 2022
In December 2022, two US plaintiffs, Adam Titcher and Adonis Real, submitted a similar lawsuit against Yuga Labs. Like Rosen’s class-action filing, the plaintiffs highlighted over 40 people and firms as defendants.
They also added celebrities such as Paris Hilton, Snoop Dogg, Post Malone, Jimmy Fallon, Justin Bieber, and Madonna. Additionally, the Scott+Scott law firm submitted a lawsuit in June 2022 saying that Yuga Labs misled its community into buying ApeCoin and BAYC NFTs.
In addition, Yuga Labs has been embroiled in several legal battles involving copyright and trademark controversies. In June 2022, Yuga Labs initiated legal action against Ryder Ripps in a court in Los Angeles, saying that Mr. Ripps had misappropriated Yuga Labs’ trademarks to advertise his NFT series.
However, another court filing argued that Yuga Labs did not have copyright registration for its BAYC NFTs. “Since Yuga Labs does not possess a copyright that has been registered, there is no immediate risk of being sued for copyright infringement on the company’s part,” the filing noted.
Despite confronting many challenges, Yuga Labs has also been attempting to extend its NFT platform. On January 18th, the company introduced a new game called Dookey Dash. This game allows BAYC holders to earn free tokens, compete for high scores, and receive more perks.
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