Well, here’s a plot twist you didn’t see coming: Dolce & Gabbana USA has dodged a class-action lawsuit over its parent company’s alleged NFT flop. A New York federal judge, Naomi Reice Buchwald, tossed out the lawsuit on Friday, deciding that Dolce & Gabbana USA isn’t the “alter ego” of its Italian parent, Dolce & Gabbana SRL. Basically, it’s not their problem, at least, that’s what the judge says.
NFT Drama and $25 Million Down the Drain
In case you missed it, the lawsuit accused Dolce & Gabbana and its US arm of not living up to their “DGFamily” NFT project launched back in 2022. A group of disappointed NFT buyers claimed that the companies raked in over $25 million but failed to deliver on the promised “high value” perks like virtual outfits for the Decentraland metaverse, real-life clothing, and exclusive events. Oops.
But wait, there’s more, according to the plaintiffs, Dolce & Gabbana kept the millions without giving anything in return. Classic case of “we’ll take your money, but you’ll get no perks.”
D&G USA Throws Its Hands Up
The US arm of the brand wasn’t having it, though. They filed to dismiss the suit in January, claiming they had nothing to do with NFTs. They said;
“Hey, we’re not in cahoots with UNXD (the NFT marketplace) or anyone else on this project.”
D&G USA argued that the NFT project came straight from Italy, and they weren’t responsible for any of the mess.
But the plaintiffs didn’t buy it. They argued that Dolce & Gabbana USA was just as guilty as the Italian parent, calling them both “the same company.” Guess the judge didn’t see it that way, though.
The Court’s Take: Try Again
Judge Buchwald agreed with Dolce & Gabbana USA, saying that the lawsuit was basically a “word soup” of accusations with no real proof of how the US arm was involved. The plaintiffs didn’t do a good enough job separating the two entities and failed to show how D&G USA directly contributed to the alleged NFT mess.
The court even noted that while the US and Italian companies shared some staff, like a CEO and other execs, the lawsuit didn’t prove that those employees were actually involved in the NFT project. So, in my opinion, the plaintiffs didn’t have enough “beef” to take down D&G USA. Better luck next time.
Gunel Ismayilova
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