In a significant ruling, a New York federal court dismissed a proposed class-action lawsuit against Dolce & Gabbana USA Inc. on Friday. The court sided with the company in a dispute over its parent company’s alleged abandonment of the “DGFamily” non-fungible token (NFT) project.
New York federal court judge Naomi Reice Buchwald decided that Dolce & Gabbana USA is a separate entity from its Italian parent company, Dolce & Gabbana SRL. This means the US branch isn’t responsible for problems with its NFT project called “DGFamily.”
In May 2024, a group of NFT buyers sued both companies, saying they were basically the same entity. The plaintiffs claimed the companies retained over $25 million from NFT sales while failing to provide the complete set of benefits promised over two years. The high-value benefits included virtual outfits for an online world called Decentraland, real clothing, and special events. The project, started in 2022 with a company called UNXD, was supposed to provide these perks.
Dolce & Gabbana USA moved to dismiss the suit in January, arguing it was a separate entity with no involvement in the NFT project, which originated from its Italian parent. Dolce & Gabbana USA said it didn’t work with UNXD, a company involved in the “DGFamily” NFT project, and didn’t promote or sell NFTs.
Although the lawsuit mentioned that the two companies shared some owners, a CEO, and other staff, it didn’t provide specific evidence that these individuals were involved in the NFT project.
Further, the judge ruled that the lawsuit didn’t clearly show that the U.S. arm of the company was involved in the NFT project or controlled by the Italian company. Because of this, Dolce & Gabbana USA was dismissed from the case.
This decision has made it uncertain whether the lawsuit can continue, as Dolce & Gabbana USA was the only US-based company being sued. The other companies named, UNXD and Bluebear Italia SRL (based in Dubai and Italy), were not officially given the lawsuit papers, so they aren’t part of the case yet.
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