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Yuga Labs and Sotheby’s React to Lawsuit Filed by Bored Ape Investors
Sotheby’s linked to Bored Ape Yacht Club NFT lawsuit. Allegations claim involvement in deceptive promotion of the NFT project amid investors’ legal action.
Sotheby’s, an auction house for fine arts, has been mentioned in the class-action case that Bored Ape Yacht Club investors against Yuga Labs (the creator of the NFT project). As per the allegations raised by the investors, the auction house assisted Yuga Labs in misleadingly endorsing the collection of non-fungible tokens (NFTs).
Lawsuit Submitted by the Investors of the Bored Ape Collection Targets Yuga Labs and Sotheby’s
On the 10th of December last year, BAYC investors submitted a class-action lawsuit to confront more than forty defendants. They take into account Yuga Labs as well as celebrities such as Paris Hilton, Justin Beiber, and Post Malone. Apart from that, the lawsuit accused the defendants of being able to falsely elevate the non-fungible tokens’ prices via celebrity promotions.
Also Read: Exploring the Long Term Challenges And Future Possibilities of the NFT Market
In an exclusive move, the mention of Sotheby’s in a new amendment to the respective lawsuit has provided a new turn to the case. On the 10th of September in 2021, the auction of approximately one hundred and one BAYC non-fungible tokens was conducted. The respective NFTs generated more than $24M in sales.
Defendants Deny the Allegations, Saying that the Lawsuit Filing Is Pointless
As per the plaintiffs’ allegations, the NFT auction supposedly assisted Yuga Labs to appear legitimate and deceived the investors. Nonetheless, the auction house reportedly stated that the allegations raised by the plaintiffs do not have any point in the case. In addition to this, the platform disclosed that it is ready to enthusiastically defend its status in front of the court.
#AuctionUpdate 101 Bored Ape Yacht Club NFTs just sold for $24.4 million and 101 Bored Ape Kennel Club NFTs achieved $1.8 million in our Ape in! auction – the most significant #BAYC sale to date. Congrats to all the apes out there 🐵🐶 pic.twitter.com/e7UghlgtKy
— Sotheby's (@Sothebys) September 9, 2021
The reports have also pointed out that the same sentiments were expressed by Yuga Labs also. In this respect, the creators at BAYC said that the unique allegations do not possess any factual basis or merit. Apart from that, the firm labeled the filing an opportunistic tactic.
