Sunday, August 20, 2023
A group of investors is suing Sotheby’s Holding Inc. and others over the 2021 auction of Bored Ape Yacht Club non-fungible tokens. The four named plaintiffs in the class action lawsuit allege that the auction house “misleadingly promoted” the NFTs and colluded with Yuga Labs to inflate prices artificially.
There are 30 defendants named in the lawsuit, including Justin Bieber and Paris Hilton, who were involved in promoting the NFT collection without disclosing financial links. The lawsuit was initially filed in December without naming Sotehby’s as a defendant. It was amended with claims that Yuga Labs hired Sotheby’s to generate investor interest and build “hype” around the Bored Ape brand. In a statement emailed to CNN, the auction house said: “The allegations in this suit are baseless, and Sotheby’s is prepared to vigorously defend itself.”
For more information see Chisty Choi “‘Bored Apes’ investors sue Sotheby’s, Paris Hilton and others as NFT prices collapse” CNN, August 17, 2023.