Nfts
Customer sues Dolce & Gabbana for late NFT delivery and 97% drop in value
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please see our website policy before making financial decisions.
Luke Brown, a disgruntled customer, filed a complaint class action v. Dolce & Gabbana USA Inc. and NFT marketplace UNXD in the U.S. District Court for the Southern District of New York. The case, numbered 24-cv-03807, alleges that the defendants failed to deliver promised products and abandoned the project, resulting in significant financial losses to Brown and other affected customers.
Disgruntled Customer Sues Fashion Company Over Botched NFT Delivery
Brown claims to have spent $6,000 on DGF Family NFTswhich he said lost 97% of their value, or approximately $5,800, due to the defendants’ actions.
The complaint states that the NFTs and associated benefits were delivered late. Promised digital outfits were delayed by 20 days, and usability was delayed by an additional 11 days due to a lack of platform approval. As a result, the value of NFTs has dropped significantly.
The law firm representing Brown released a statement alleging a pattern of promising and underdelivering products, followed by abandonment of the project and the community.
What are DGFamily NFTs?
DGFamily NFTs were announced in February 2022 and released during the first Metaverse Fashion Week in March 2022hosted by Decentraland in partnership with UNXD.
The collection featured 20 bespoke Metaverse wearables designed to celebrate creativity and innovation in the Metaverse. These NFTs were available exclusively to DGFamily Box holders and aimed to embody the unique DGDNA 3.0, transcending reality and the metaverse.
DGFamily NFT holders have been promised benefits such as access to exclusive drops, invitations to physical and digital events, collaboration opportunities, and more. However, the alleged delays and abandonment of the project have left many clients, like Brown, feeling misled and seeking legal recourse.
The impact of this case extends beyond Brown, as it was filed as a class action on behalf of other affected customers. The outcome of this legal battle could set a precedent for the responsibilities and obligations of companies that have launched into NFTs and the metaverse.
Do you think buying NFTs in current market conditions is a good decision? Let us know in the comments below.
Disclaimer: The author neither owns nor has any position in the securities discussed in the article.
About the Author
Tim Fries is the co-founder of The Tokenist. He holds a BSc in mechanical engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior associate on the investment team in the US private equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and security solutions. and control.