Class action lawsuit against Yuga Labs is planned submit law firm Scott+Scott. The cause of the lawsuit is related to the Bored Ape Yacht Club (BAYC) non-fungible token collection and the ApeCoin project token (APE).
Based on the statement, the company “unreasonably encouraged” investors to buy “its financial products.” Allegedly, Yuga Labs bought advertising from celebrities to increase the price of NFT and token.
“When it turned out that advertised growth was entirely dependent on promotion […]retail investors were left with tokens that lost over 87% of their inflated price on April 28, 2022,” the lawyers said.
Now the law firm is at the stage of searching for participants in a class action lawsuit. The complaint has not yet gone to court.
The APE project was launched March 17 and traded at $8.5. On April 28, the price of the token reached $27.5, and at the time of writing it fell to $6.2. The coin has lost about 78% from its peak.
In response to the news, crypto enthusiasts took to Twitter to urge investors to “take responsibility for their own actions.”
So there’s a class action lawsuit against @yugalabs as investors were “inappropriately induced to buy financial products created by Yuga Labs”.
Extremely ridiculous😂 Take responsibility for your own actions people. https://t.co/WeuVVLNGv6 pic.twitter.com/7c9Jywvv9V
— Kevin Wu 🦾🤖🦾 (@kevwuzy) July 24, 2022
Another user called the potential litigants a “bunch of crazy people” who bought APE “on the highs.”
Lolz this lawsuit against @yugalabs is just a bunch of people mad cuz they bought the top of the $APE ApeCoin chart and got rekt. 🤣 pic.twitter.com/8v8pOdg1mg
— chefdisco.eth ᵍᵐ 🍌 (@SoapBoxCar) July 24, 2022
Recall that the BAYC project was supported Eminem, Snoop Dogg, Madonna and other celebrities.
