Dolce & Gabbana USA NFT Lawsuit Rejected as Court Finds No Direct Role in DGFamily NFT Project
Dolce & Gabbana USA Avoids NFT Lawsuit Despite Project Abandonment Claims
Dolce & Gabbana’s U.S. division has been kicked out of a planned class-action lawsuit alleging that its parent firm neglected a non-fungible token (NFT) programme, according to Cointelegraph. Judge Naomi Reice Buchwald of the federal court in New York decided on Friday that Dolce & Gabbana USA Inc. was not a “alter ego” of its parent business, Dolce & Gabbana SRL, in Italy.
A group of NFT buyers filed the complaint, which was amended in September after it was first filed in May 2024. They said that Dolce & Gabbana and its U.S. division were practically the same company and had not delivered on commitments about the 2022 “DGFamily” NFT project, allegedly keeping more than $25 million from the endeavour. Since Dolce & Gabbana USA was the only defendant with a U.S. base, the lawsuit’s future is questionable. The complaint was sent to Bluebear Italia SRL, an Italian company that created the “inBetweeners” NFT collection, and UNXD Inc., an NFT marketplace based in Dubai, as well as other defendants.
According to the complaint, Dolce & Gabbana and UNXD collaborated to develop and market the DGFamily initiative, which assured purchasers of “high value” benefits that would be provided on a quarterly basis for two years. According to reports, these advantages included live events for NFT holders, real apparel, and digital attire for the Decentraland metaverse. But according to the lawsuit, Dolce & Gabbana kept millions of dollars from NFT sales while failing to provide the full range of benefits that were promised.
In January, Dolce & Gabbana USA filed a motion to have the lawsuit dismissed, claiming that it was a separate legal entity unrelated to its parent firm in Italy’s NFT operations. The U.S. arm argued that it had not entered into a joint venture to sell, market, or promote NFTs with UNXD or any other organisation. The firm insisted that the evidence in the case did not adequately prove a connection between the U.S. and Italian entities and that the NFT initiative came from its parent company in Italy.
The case, according to Judge Buchwald, was “plainly insufficient to withstand D&G USA’s motion to dismiss,” since it did not distinguish between the activities of the Italian and American corporations, who were referred to as “Dolce & Gabbana.” An “overlap in ownership, officers, directors, and personnel” between the two companies—including shared executives—was brought to light in the updated case. It did not, however, offer concrete instances of these executives’ involvement with the NFT initiative. According to Judge Buchwald, despite purported joint workers and office space, the plaintiffs had not sufficiently shown that D&G S.R.L. fully controlled D&G USA.
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