TechFlow news — Scott+Scott Attorneys at Law LLP is currently organizing a class-action lawsuit against Yuga Labs. The lawsuit will allege that Yuga improperly marketed Bored Ape NFTs and ApeCoin (its native Ethereum-based token) as securities products with guaranteed returns, despite the value of these tokens plummeting over the past three months.
The plaintiffs in the case have not yet filed a formal complaint in federal court. Scott+Scott is still seeking individuals who suffered losses from purchasing Yuga-backed NFTs and tokens between April and June. The firm has not immediately responded to requests for comment on the matter.
The crux of the case hinges on whether courts will classify NFTs as securities—similar to company shares that can appreciate in value. If the court determines that BAYC NFTs and their native token ApeCoin qualify as securities, this could mean Yuga Labs failed to meet required disclosure and registration obligations associated with issuing securities.
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