Dolce & Gabbana USA Inc., the American arm of the renowned Italian luxury fashion house, has recently been absolved from a class-action lawsuit related to its NFT project by a federal judge. The lawsuit, which targeted both Dolce & Gabbana US and its Italian parent company, Dolce & Gabbana SRL, alleged that the “DGFamily” NFT project was a fraudulent scheme that left investors empty-handed while retaining their funds.
In a ruling issued on July 11 by Judge Naomi Reice Buchwald of the Southern District of New York, Dolce & Gabbana USA Inc. was cleared of any involvement in the failed NFT project. The judge determined that Dolce & Gabbana USA Inc. is not an “alter ego” of its parent company, Dolce & Gabbana SRL, and therefore cannot be held liable for the actions of the latter.
The lawsuit, filed in May and amended in September 2024, accused Dolce & Gabbana of abandoning the “DGFamily” NFT project and failing to deliver on its promises to customers. The project, which was marketed as offering exclusive drops, collaborations, digital wearables, physical products, and events, was described in the lawsuit as a classic “rug pull” scam.
According to the lawsuit, Dolce & Gabbana misled investors by enticing them to purchase unregistered securities (DGFamily Products) with promises of exclusive benefits, only to abandon the project and retain over $25 million in investor funds. The lawsuit alleges that Dolce & Gabbana’s actions were driven by either recklessness or greed, leading to the failure of the project and leaving investors at a loss.
With Dolce & Gabbana USA Inc. now cleared from the lawsuit, the future of the litigation remains uncertain. It is unclear how the case will proceed without the American branch of the fashion house involved in the legal proceedings.
In conclusion, Dolce & Gabbana USA Inc. has been dismissed from the class-action lawsuit involving the “DGFamily” NFT project, signaling a potential shift in the direction of the legal battle. The allegations of fraud and misconduct surrounding the project have cast a shadow over the iconic fashion house, raising questions about accountability and transparency in the NFT space.