According to the international law firm Scott+Scott’s website, there’s a possibility that the non-fungible token (NFT) company Yuga Labs may be threatened with a class action lawsuit for generally promoting “the growth prospects and change for huge returns on investment to unsuspecting investors.”
Law firm seeks investors who ‘suffered losses’ from Yuga Labs products
Law firm Scott + Scott details that NFT company Yuga Labs is accused of using “promoters and celebrity endorsements to inflate the price of the company’s NFTs and tokens.” However, as of this writing, current court records show that no formal class action lawsuits against Yuga Labs have been filed.
Scott+Scott’s website says the firm is currently seeking investors who “suffered losses in association with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022.” The token named in the accusations against Yuga Labs is apecoin (APE), a crypto asset associated with the Bored Ape Yacht Club (BAYC) and Otherside metaverse project.
“After selling millions of dollars of fraudulently promoted NFTs, Yuga Labs launched the Ape Coin to attract more investors,” the Scott+Scott webpage says. “Once it was revealed that the advertised growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology), retail investors were left with tokens that had lost more up 87% from the inflated price on April 28, 2022.” The law firm’s website adds:
As a result, Yuga Labs’ individual investors are now joining together through a class action brought by law firm Scott+Scott, to seek restitution for losses incurred from the purchase of Yuga Labs tokens and NFTs. If you suffered losses in association with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022 you are encouraged to reach out to Scott+Scott to learn more about your legal rights.
Scott + Scott Involved in 6 Different Crypto Cases – Boutique Law Firms Flock to the Blockchain Industry
The law firm Scott+Scott covers a large number of different legal proceedings and complex disputes in Europe and the United States. Scott + Scott is involved in securities litigation involving high-profile names like Edison International, General Mills, Intuit, Roblox Corporation, Tesla, Transunion and Twitter.
Scott+Scott’s website notes that the legal firm is involved with a number of “crypto cases.” Other crypto legal matters involve crypto companies and projects like Celsius, Ethermax, Safemoon, Solana Labs, Terra, and the final crypto case listed is Yuga Labs.
Yuga Labs didn’t mention the accusations stemming from Scott+Scott’s web portal, and the company’s latest tweet mentioned a threat to the NFT community. “Our security team has been tracking a group of persistent threats that targets the NFT community,” Yuga Labs tweeted on July 18, 2022. “We believe they may soon launch a coordinated attack targeting multiple communities via compromised social media accounts. Please be vigilant and stay safe.
During the last few years, boutique law firms focusing on complex legal matters that involve blockchain technology have been more prominent in the crypto industry. Like Scott+Scott, a number of these law firms are taking on a lot of litigation matters that involve cryptocurrencies and alleged unregistered securities.
Roche Freedman LLP is another firm that has a variety of crypto cases under the law firm’s wing, and partners Kyle Roche and Devin “Velvel” Freedman are well known for the court case involving Craig Wright. Similar to Scott + Scott, Roche Freedman is also involved in a case that has been filed against bankrupt crypto lender Celsius.
