According to Blockworks, a class action lawsuit has been filed against luxury fashion brand Dolce & Gabbana by a California resident, Luke Brown. The lawsuit, which has been filed in the Southern District of New York courthouse, is related to the NFTs released by the company in 2022. Brown alleges that Dolce & Gabbana failed to deliver the promised benefits to NFT buyers and manipulated the initial and resale markets for the assets. As a result, Brown claims to have lost $5,800 on his $6,000 investment.
The lawsuit further details how the DGFamily project, which was launched in collaboration with the 'digital luxury and culture' marketplace UNXD, failed to deliver on eight promised benefits. These benefits were supposed to include digital wearables, physical clothing, and access to events. The lawsuit alleges that the first digital wearables were delivered about a month late and could only be used on a metaverse platform with minimal users, known as DecentraLand.
This lawsuit follows a recent settlement of $1.9 million paid by former NFL star Rob Gronkowski over his endorsement of the now-bankrupt crypto lender Voyager Digital. It also comes at a time when several legacy corporations that launched Web3 initiatives during the crypto hype cycle of 2021 and 2022 are quietly shutting down operations. Some recent examples include Starbucks, GameStop, and others.
Dolce & Gabbana has not posted about DGFamily on its platforms since April 2023. The company's NFTs are currently being traded for a fraction of an ether on OpenSea. The company has not yet responded to requests for comment.
In other news, Pump.fun, a popular memecoin trading platform, was exploited for nearly $2 million on Thursday. The company claims that a rogue employee was behind the exploit. Despite the exploit, the platform resumed trading hours later, and the day of the exploit turned out to be Pump.fun's second-highest revenue day since its launch, according to DeFiLlama.