Yuga Labs Faces Lawsuit Threats From USA-Headquartered Law Firm, Scott+Scott

Yuga Labs

Scott+Scott, a law firm headquartered in the USA, is threatening a class action lawsuit against Yuga Labs, the brand behind the popular NFT collections of Mutant Ape Yacht Club (MAYC), Bored Ape Yacht Club (BAYC), and Otherside.

According to Scott+Scott’s announcement, their lawsuit argues that Yuga Labs “inappropriately” promoted ApeCoin (APE) and BAYC. The law firm believes that Yuga Labs induced investors to buy these financial products.

In their words, via the announcement, “The YUGA LABS leadership used celebrity promoters and endorsements to inflate the price of the company’s NFTs and token, by generally [promoting] the growth prospects and change for huge returns on investment to unsuspecting investors.”

They also argued that the company behind these NFTs collections launched ApeCoin after selling several millions of dollars worth of “fraudulently promoted NFTs” to “further fleece investors.”

Their statement read in part, “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.”

However, until this news report was written, the law firm hadn’t filed an official complaint in a federal court.

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