Eden Gallery has filed a motion in court to dismiss a class-action lawsuit by NFT holders, attributing the drop in NFT prices to market conditions, not fraudulent activity.
Accusations Against Eden Gallery
The lawsuit was filed on January 7 in a New York federal court. The gallery argues that the decline in NFT values, including its 'Meta Eagle Club' collection, is part of a market-wide downturn, rather than fraud or misrepresentation.
Core Allegations
The lawsuit, filed in October by 36 holders of the Meta Eagle Club NFTs, accuses Eden Gallery and the collection creator Gal Yosef of fraud and unjust enrichment. Plaintiffs allege the project, which raised $13 million between February 2022 and November 2023, failed to deliver on promises post-initial sales.
Market Conditions and Outlook
The gallery notes that recent optimism in the NFT market does not outweigh the overall downturn. Analysts point out that NFT sales volumes are down by 98% from early 2022 highs, highlighting challenges for creators and collectors.
While Eden Gallery seeks to dismiss the lawsuit, challenges in the NFT industry remain amid significant market fluctuations. The lawsuit by NFT holders highlights their dissatisfaction, but the gallery insists losses are market-driven.
