Italian luxury brand Dolce & Gabbana won a significant victory in a class action lawsuit alleging the company failed to deliver on promised benefits related to its DGFamily NFT project valued at $25 million.
Overview of the Lawsuit Against Dolce & Gabbana
The lawsuit, filed in May 2024, targeted Dolce & Gabbana and its partners, including UNXD, for selling high-value NFTs under the DGFamily brand without delivering associated perks. The promised benefits included exclusive digital fashion items, physical merchandise, and access to events that were supposed to be delivered quarterly over two years.
Court's Ruling on the Case
According to court documents published on July 11, a federal judge in New York dismissed the case against Dolce & Gabbana USA Inc., weakening the broader action brought by plaintiff Luke Brown. The court found insufficient grounds to hold the American subsidiary liable for the alleged actions of its Italian parent company. Judge Naomi Reice Buchwald noted that the plaintiff failed to provide specific facts showing that the US entity had direct involvement in the NFT project.
Implications and Future of the Lawsuit
With the dismissal of the case against Dolce & Gabbana USA, the future of the class action lawsuit remains uncertain. The plaintiff, who claims to have lost $5,800 on the purchase of a DGFamily NFT, filed the lawsuit on behalf of a putative class of customers. The complaint also named UNXD and Bluebear Italia SRL, which have not yet been served regarding the lawsuit.
Dolce & Gabbana's court victory highlights the legal challenges facing brands in the NFT space and leaves open the question of how similar cases might unfold in the future.
