Judge Dismisses NFT Lawsuit Against Dolce & Gabbana USA

A federal judge has dismissed a class action lawsuit against Dolce & Gabbana USA, ruling that the U.S. branch is not legally responsible for the allegedly failed "DGFamily" NFT project, which raised over $25 million.

Ruling and Reasoning

Judge Naomi Reice Buchwald sided with Dolce & Gabbana USA Inc., stating that the company is not the "alter ego" of its parent company in Italy, which operates the NFT project. Despite some overlap, there was insufficient evidence to prove the necessary dominance to establish legal liability. This ruling is a significant blow to the buyers of #NFT​ who alleged they were victims of a "rug pull".

The judge also criticized the plaintiff's vague "generalized" lawsuit, failing to clearly distinguish the actions of each legal entity. The lawsuit faces many obstacles as foreign defendants have not yet been served with the complaint. #DolceGabbana