Dolce & Gabbana USA Inc. successfully defends against a proposed class-action lawsuit regarding unmet obligations in an NFT project. The court recognized the company as not being the legal continuation of its Italian parent.
Background of the Lawsuit
A group of NFT buyers filed a lawsuit against Dolce & Gabbana and its US arm in May 2024, accusing the company of failing to deliver on its "DGFamily" NFT project initiated in 2022 and unlawfully retaining over $25 million.
Defense Arguments from Dolce & Gabbana USA
Dolce & Gabbana USA filed a motion to dismiss the suit, arguing that they are a separate entity and not connected to the actions of their Italian headquarters. The company stated that it did not enter into any joint ventures to sell or promote NFTs.
Court's Decision
Judge Naomi Reice Buchwald dismissed the lawsuit, citing that it did not adequately differentiate between the actions of the two companies. The lawsuit used the collective term "Dolce & Gabbana" without specifying which entity was responsible for related activities.
As a result, the lawsuit against Dolce & Gabbana USA was dismissed by the court, raising questions about the future of other defendants and potential implications for NFT projects.
