NFTs
Customer sues Dolce & Gabbana for late delivery of NFT 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 dissatisfied customer, filed a lawsuit class action lawsuit v. Dolce & Gabbana USA Inc. and NFT marketplace UNXD in the U.S. District Court, Southern District of New York. The case, number 24-cv-03807, alleges that the defendants failed to deliver promised products and abandoned the project, resulting in significant financial losses for Brown and other affected customers.
Dissatisfied customer sues fashion company over failure to deliver NFT
Brown claims to have spent $6,000 on NFTs from the DGF familywhich he claims lost 97% of their value, approximately $5,800, due to the defendants’ actions.
The complaint states that the NFTs and associated benefits were delivered late. The promised digital costumes were delayed by 20 days and usability was delayed by an additional 11 days due to lack of platform approval. As a result, the value of NFTs has dropped significantly.
The law firm representing Brown issued a statement alleging a pattern of promising and failing to deliver, followed by abandonment of the project and the community.
What are DGFamily NFTs?
DGFamily NFTs were announced in February 2022 and launched during the first Metaverso Fashion Week in March 2022hosted by Decentraland in partnership with UNXD.
The collection featured 20 custom metaverse wearables designed to celebrate creativity and innovation in the metaverse. These NFTs were available exclusively to DGFamily Box holders and were intended to embody the unique DGDNA 3.0, transcending reality and the metaverse.
Holders of DGFamily NFTs were promised benefits such as access to exclusive discounts, invitations to physical and digital events, collaboration opportunities and more. However, the alleged delays and abandonment of the project left many clients, like Brown, feeling deceived and seeking legal recourse.
The impact of this case goes beyond Brown, as it was filed as a class action on behalf of other affected clients. The outcome of this legal battle could set a precedent for the responsibilities and obligations of companies that have delved into NFTs and the metaverse.
Do you think buying NFTs in current market conditions is a good move? Let us know in the comments below.
Disclaimer: The author does not own or have a position in any securities discussed in the article.
About the author
Tim Fries is the co-founder of The Tokenist. He has a bachelor’s degree. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim served as a senior associate on the investment team of RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.