Not Their Bag: Dolce & Gabbana USA Dismissed from NFT Fraud Case

Author

Julia Smith

Author

Julia Smith

About Author

Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

Last updated: 

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Dolce & Gabbana USA Inc., the American branch of the Italian luxury fashion house, has been dismissed by a federal judge from a class-action lawsuit involving its NFT project.

Dolce & Gabbana USA Was Not Behind Failed NFT Project

According to a July 11 ruling from Judge Naomi Reice Buchwald of the Southern District of New York, Dolce & Gabbana USA Inc. is cleared from the high-profile litigation as it is not an “alter ego” of its parent company, Dolce & Gabbana SRL, which was in charge of the NFT-focused “DGFamily” project.

“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,” the filing states in part.

“For the foregoing reasons, D&G USA’s motion is granted,” Reice concludes.

DGFamily NFT Project Slammed As Rug Pull In Lawsuit

Filed in May and amended in September 2024, the lawsuit alleges that Dolce & Gabbana US and its Italian counterpart abandoned the “DGFamily” NFT project and failed to deliver on the mission’s promises while retaining customer funds.

According to the Dolce & Gabbana website, “DGFamily” supposedly provided access to exclusive drops and collaborations, digital wearables, physical products, and events hosted by the company.

However, the litigation implies that the iconic fashion house’s digital asset venture was nothing more than a classic “rug pull.”

“Each of Defendants’ misrepresentations and omissions were material because they were designed to, and did, entice the public into purchasing unregistered securities (DGFamily Products) which were barely more than a vehicle for the Defendants’ enrichment,” the lawsuit reads.

“Either through reckless incompetence or greed, Defendants failed to deliver what they promised in exchange for purchasing their digital assets and abandoned their crypto project while retaining over $25 million used to fund the project,” it continues.

With the U.S. branch now cleared from the litigation, it remains unclear how the lawsuit will proceed.

You May Also Like