A class action lawsuit was filed yesterday against Yuga Labs in the U.S. District Court’s Central District of California.
The suit alleges that celebrities including Justin Bieber, Madonna, Steph Curry, and Paris Hilton violated state and federal laws by promoting Bored Ape Yacht Club NFTs.
The suit also alleges that talent manager Guy Oseary instructed his extensive celebrity network to publicly support Yuga’s products in exchange for payments.
These payments were allegedly funneled through MoonPay to the celebrities who promoted the NFTs.
MoonPay is now valued at $3.4 billion and counts many of the suit’s celebrity defendants among its investors, including Bieber, Curry, Hilton, Kevin Hart, Jimmy Fallon, and Gwyneth Paltrow.
Yuga Labs vigorously denies the allegations. In order for the plaintiff to succeed in the lawsuit, it must be proven that the company's celebrity amplifiers used unfair or deceptive practices when endorsing its products.