Yuga Labs 'Improperly Induced' BAYC Investors: Class Action
Law firm Scott+Scott alleges that Yuga Labs promoted a chance for huge investment returns to "unsuspecting investors".
New
A proposed class action lawsuit alleges that Yuga Labs "improperly incited" the community to purchase Bored Ape Yacht Club Non-Fungible Tokens (NFTs) and the project-affiliated ApeCoin (APE) token.
The proposed class action lawsuit by law firm Scott+Scott was released on Thursday, claiming that Yuga Labs used celebrity promoters and endorsements to “inflate the price” of BAYC NFTs and the APE token.
He also alleges that Yuga Labs promoted growth prospects and the possibility of huge investment returns to "unsuspecting investors:"
"After selling millions of dollars of fraudulently promoted NFTs, YUGA LABS launched the Ape Coin to attract more investors."
"Once it was revealed that 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 over 87% from the inflated price of April 28, 2022,” he added.
The law firm is currently looking for impacted investors who suffered losses on BAYC and Apecoin NFTs between April and June this year.
During this period, the APE reached its all-time high of $26.70 before dropping around 82.5% to $4.66 at the end of June, while the floor price fell from 151, 5 Ether (ETH) to 92.9 ETH.
There is therefore a class action lawsuit against @yugalabs because investors were "inappropriately induced to buy financial products created by Yuga Labs" .
Extremely Ridiculous Take responsibility for your own actions. huh...
Law firm Scott+Scott alleges that Yuga Labs promoted a chance for huge investment returns to "unsuspecting investors".
New
A proposed class action lawsuit alleges that Yuga Labs "improperly incited" the community to purchase Bored Ape Yacht Club Non-Fungible Tokens (NFTs) and the project-affiliated ApeCoin (APE) token.
The proposed class action lawsuit by law firm Scott+Scott was released on Thursday, claiming that Yuga Labs used celebrity promoters and endorsements to “inflate the price” of BAYC NFTs and the APE token.
He also alleges that Yuga Labs promoted growth prospects and the possibility of huge investment returns to "unsuspecting investors:"
"After selling millions of dollars of fraudulently promoted NFTs, YUGA LABS launched the Ape Coin to attract more investors."
"Once it was revealed that 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 over 87% from the inflated price of April 28, 2022,” he added.
The law firm is currently looking for impacted investors who suffered losses on BAYC and Apecoin NFTs between April and June this year.
During this period, the APE reached its all-time high of $26.70 before dropping around 82.5% to $4.66 at the end of June, while the floor price fell from 151, 5 Ether (ETH) to 92.9 ETH.
There is therefore a class action lawsuit against @yugalabs because investors were "inappropriately induced to buy financial products created by Yuga Labs" .
Extremely Ridiculous Take responsibility for your own actions. huh...
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