Dolce & Gabbana USA Dodges NFT Class-Action Lawsuit

The US arm of Dolce & Gabbana has successfully exited a proposed class-action lawsuit concerning its parent company’s alleged abandonment of a non-fungible token (NFT) project. On Friday, New York federal judge Naomi Reice Buchwald ruled in favor of Dolce & Gabbana USA Inc., dismissing the lawsuit on the grounds that it was not an “alter ego” of its Italy-based parent, Dolce & Gabbana SRL. The lawsuit, initially filed in May 2024 and updated in September, was brought by a group of NFT buyers who claimed that Dolce & Gabbana and its US arm “are effectively the same company.” The plaintiffs argued that the firms failed to deliver on their “DGFamily” NFT project , launched in 2022, and allegedly retained over $25 million from sales without providing the promised benefits. The NFT project was promoted with promises of quarterly benefits for two years, including digital outfits for the Decentraland metaverse, physical clothing, and exclusive live events for NFT holders. US Entity Claims No Involvement in NFTs Dolce & Gabbana USA moved to dismiss the case in January, stating it had no involvement in any NFT-related activities and operated separately from its Italian parent. It argued that the NFT project was initiated by Dolce & Gabbana SRL in Italy and that there was no joint venture with the Dubai-based NFT marketplace UNXD Inc., or any other entity, for promoting or selling NFTs. The complaint also named UNXD Inc. and Bluebear Italia SRL, the creator of the “inBetweeners” NFT collection, as defendants. However, the court noted these entities were not served with the complaint, raising further questions about the future viability of the case. The US entity argued that the plaintiffs did not present sufficient evidence linking it to the NFT project, emphasizing its operational independence despite shared corporate personnel. Judge Notes Lack of Specific Allegations in Lawsuit In her ruling, Judge Buchwald highlighted that the lawsuit failed to differentiate the actions of Dolce & Gabbana USA from those of its Italian parent, stating the complaint was “plainly insufficient to withstand D&G USA’s motion to dismiss.” She noted that while the plaintiffs referenced shared executives and overlapping personnel, they did not provide concrete examples of how these individuals were directly involved in the NFT project in question. “The Court finds that plaintiff has not adequately alleged that D&G S.R.L. completely dominated D&G USA even if D&G S.R.L. allegedly shared some employees and office space with D&G USA,” Judge Buchwald wrote. The post Dolce & Gabbana USA Dodges NFT Class-Action Lawsuit appeared first on TheCoinrise.com .

Source: The Coin Rise