, 2022-12-09 10:24:27,
Justin Bieber, Snoop Dogg, The Weeknd and dozens of other celebrities are facing a new class action alleging they were secretly paid to “misleadingly” promote NFTs like the Bored Ape Yacht Club, leaving investors with “staggering losses.”
In a complaint filed Thursday in Los Angeles federal court, attorneys for a pair of consumers claimed that Bored Ape parent company Yuga Labs Inc. perpetrated a “vast scheme” in which they “discreetly” paid “highly influential celebrities” to pump up the value of the NFTs (non-fungible tokens).
“Defendants’ promotional campaign was wildly successful, generating billions of dollars in sales and re-sales,” the lawyers for the plaintiffs wrote. “The manufactured celebrity endorsements and misleading promotions … were able to artificially increase the interest in and price of the BAYC NFTs…, causing investors to purchase these losing investments at drastically inflated prices.”
Though this “conspiracy” eventually “raked in millions” for the various defendants, the lawsuit said investors in Bored Ape and other NFTs “were left with staggering losses.”
Yuga Labs and reps for Justin Bieber, Snoop Dogg, The Weeknd also did not return requests for comment.
The case is the latest over celebrity endorsements for cryptocurrencies and NFTs, which soared in value during 2020 and 2021 but have taken a bruising as the economy has slowed in 2022.
In January, investors sued…
To read the original article from news.google.com Click here