Sotheby’s, a prestigious fine arts auction house, is now facing a class-action lawsuit from investors of Bored Ape Yacht Club (BAYC), a nonfungible token (NFT) collection created by Yuga Labs.
The investors claim that Sotheby’s helped Yuga Labs to “fraudulently market” the NFTs.
The class-action lawsuit was filed on Dec. 10, 2022, by BAYC investors against more than 40 defendants, including Yuga Labs and famous celebrities such as Post Malone, Justin Beiber and Paris Hilton. The lawsuit accused Yuga Labs and the celebrities of “inflating” the NFT prices through celebrity endorsements.
The plaintiffs have added Sotheby’s as a defendant in an amendment to the lawsuit. Sotheby’s had sold 101 BAYC NFTs for over $24 million in an auction on Sept. 10, 2021.
The plaintiffs allege that the auction made Yuga Labs appear reputable and deceived investors.
However, Sotheby’s reportedly told CNN, a mainstream media outlet, that the allegations are “unfounded.” Sotheby’s also stated that it is ready to “strongly defend” itself.