A high-profile lawsuit targeting Dolce & Gabbana’s NFT project has taken a serious blow, as a U.S. federal judge dismissed claims against Dolce & Gabbana USA Inc., ruling that the American branch is not legally tied to its Italian parent company’s blockchain venture.
Judge Rules U.S. Arm Not Liable in NFT Dispute
The lawsuit, originally filed in May 2024 and updated in September, accused Dolce & Gabbana of failing to deliver the promised benefits tied to its “DGFamily” NFT collection, launched in 2022 in partnership with NFT marketplace UNXD. Buyers alleged they were misled into investing over $25 million into digital tokens that were supposed to provide quarterly rewards such as exclusive virtual wearables, physical merchandise, and live event access.
However, Judge Naomi Reice Buchwald dismissed the case against Dolce & Gabbana USA on July 12, stating that the plaintiffs failed to distinguish the roles played by the U.S. and Italian entities. The ruling found that the complaint lumped both firms together under one name — “Dolce & Gabbana” — without clear evidence of how the American entity participated in the NFT operations.
“Plaintiff has not adequately alleged that D&G S.R.L. completely dominated D&G USA,” Judge Buchwald wrote, emphasizing the legal separation between the companies.
Plaintiffs Claimed Overlapping Control
While the lawsuit highlighted shared executives — including the CEO, operations chief, and marketing leaders — it failed to provide specific examples of those individuals’ direct involvement in the NFT initiative. This weakened the case’s claim that Dolce & Gabbana USA functioned as an ‘alter ego’ of the Italian parent.
https://cointelegraph.com/news/dolce-gabbana-us-arm-cleared-nft-lawsuit
NFT Buyers Left in Limbo
With the only U.S.-based defendant now cleared, the future of the class-action lawsuit is uncertain. Other defendants, including Dubai-based UNXD and Italy’s Bluebear SRL, have not yet been served with the complaint. This significantly reduces the chance of the case proceeding in U.S. courts.
The lawsuit centers on alleged broken promises to NFT holders who were expecting “high-value digital and physical perks” from the DGFamily collection.
Legal Strategy Prevails, But NFT Trust Erodes
While Dolce & Gabbana USA may have legally distanced itself from the NFT fallout, the case highlights growing legal scrutiny over celebrity and fashion-backed NFT projects. As digital ownership becomes more mainstream, clearer accountability and corporate transparency will be essential to restoring investor trust in the Web3 space.
Disclaimer
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