Dolce & Gabbana USA Inc. has successfully exited a proposed class-action lawsuit concerning its parent company’s alleged abandonment of an NFT project.
Case Against Dolce & Gabbana USA
The lawsuit was filed by a group of NFT buyers in May 2024 and updated in September. The plaintiffs claimed that Dolce & Gabbana and its US arm are effectively the same company, accusing them of failing to deliver on their 'DGFamily' NFT project launched in 2022.
Denial of NFT Involvement
Dolce & Gabbana USA moved to dismiss the case in January, stating it had no involvement in any NFT-related activities and operated separately from its Italian parent. They noted that the NFT project was initiated by Dolce & Gabbana SRL in Italy, without joint actions with any other entity.
Court Ruling
Judge Naomi Reice Buchwald indicated that the lawsuit failed to clearly differentiate the actions of Dolce & Gabbana USA from its Italian parent company and recognized the lack of concrete allegations against the US entity. The judge noted, 'The 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 with D&G USA.'
This ruling emphasizes the importance of a clear separation of corporate actions and highlights the need for concrete evidence in such lawsuits.
