Yuga Labs, the creators of the Bored Ape Yacht Club (BAYC) and the cryptocurrency technology Moonpay, is facing a class action lawsuit for allegedly falsely promoting and selling non-fungible tokens using celebrities (NFTs).

The lawsuit names more than 40 defendants, including Paris Hilton, Snoop Dogg, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, and Diplo. The class action lawsuit was filed on December 8 in the Central District of California by John T. Jasnoch of Scott+Scott Attorney Law LLP, alleging that crypto companies are using Hollywood networks to promote digital assets without complying with disclosure requirements. According to the document:

"This lawsuit exemplifies these concerns because it involves a grand scheme involving a blockchain startup Yuga Labs, Inc. ("Yuga"), a well-connected Hollywood talent agent (accused Guy Oseary), and a front of operations manager" (MoonPay). teamed up to promote and sell a variety of digital assets."
According to the lawsuit, executives at Yuga Labs and Oseary devised a strategy to use a large network of A-list musicians, athletes, and clients to give investors the feeling of "joining the club" through Yuga's flagship.

"The exclusivity of BAYC membership was entirely dependent on the inclusion and endorsement of powerful celebrities." However, he claims that "this alleged interest in and endorsement by high-profile creators of BAYC NFTs was entirely fabricated by Oseary at the behest of the Administrative Defendants."

Adonis Real and Adam Titcher, the two plaintiffs in the lawsuit, purchased Yuga Labs' NFT collections between April 2021 and the present. The class action lawsuit also cited an earlier SEC statement on celebrity endorsements, which stated that "these endorsements may be illegal if they do not disclose the nature, source, and amount of any compensation paid directly or indirectly by the company in exchange for warranty."

According to a spokesperson for Yuga Labs, "The accusations are opportunistic and parasitic in nature. We believe they are false and hope to prove it."

According to Cointelegraph, the class action lawsuit was first brought to light in July when law firm Scott+Scott claimed Yuga Labs used celebrity endorsements to "inflate the price" of BAYC NFTs and APEs.
While attempting to identify disgruntled investors, APE flags a token at $4.26.

Yuga Labs is also being investigated by US regulators as part of a larger investigation into the NFT market. According to reports, the SEC is looking into Yuga Labs to see if certain NFTs are "more like stocks" and if their sales violate federal law.