Yuga Labs threatened with a lawsuit for allegedly fleecing investors
Law firm Scott + Scott has threatened Crypto currency company Yuga labs for allegedly inflating the price of company's NFTs and token
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Law firm Scott+Scott has threatened to file a class action lawsuit against Yuga Labs, the creator of Ape Coin and Bored Ape Yacht Club, alleging that investors were inappropriately induced to buy financial products and that celebrity promoters and endorsements inflated the price of the company’s NFTs and token.
According to an announcement by the law firm, unsuspecting investors were induced into buying the NFTs and tokens by the leadership, which promised huge growth prospects and returns on their investments through celebrity promoters and endorsements.
Yuga Labs fleeced investors
“After selling off millions of dollars of fraudulently promoted NFTs, YUGA LABS launched the Ape Coin to further fleece investors. Once it was revealed that the touted 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 high on April 28, 2022," the announcement stated.
Individual investors to seek compensation for losses
It added that individual investors of NFTs and the Ape Coin will now come together to seek restitution for the loss of their funds and asked those who suffered losses to reach out to the firm.
The company, however, has not yet responded to the allegation.
In response to the proposed lawsuit, the community seemed unperturbed with several users voicing support for Yuga Labs.
Interestingly, the $4 billion company had sued a prominent artist for copyright infringement, claiming that buyers were being scammed into buying identical NFTs and that it was a "deliberate effort to harm Yuga Labs at the expense of consumers."
The artist, Ryder Ripps, was referred to as "a self-proclaimed 'conceptual artist" in the lawsuit, which claimed that he created an identical NFT collection of BAYC images he did not purchase.
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