Dolce & Gabbana USA Escapes NFT Lawsuit Amid Allegations of Project Abandonment

According to Cointelegraph, the U.S. branch of Dolce & Gabbana has been dismissed from a proposed class-action lawsuit concerning its parent company's alleged neglect of a non-fungible token (NFT) initiative. On Friday, New York federal court Judge Naomi Reice Buchwald ruled in favor of Dolce & Gabbana USA Inc., stating that it was not an "alter ego" of its Italian parent company, Dolce & Gabbana SRL. The lawsuit, initially filed in May 2024 and revised in September, was brought by a group of NFT buyers. They claimed that Dolce & Gabbana and its U.S. arm were essentially the same entity and had failed to fulfill promises related to the "DGFamily" NFT project launched in 2022, allegedly retaining over $25 million from the venture. The future of the lawsuit is uncertain, as Dolce & Gabbana USA was the only U.S.-based defendant. Other defendants included the Dubai-based NFT marketplace UNXD Inc. and Italy-based Bluebear Italia SRL, the creator of the "inBetweeners" NFT collection, neither of which were served with the complaint. The complaint accused Dolce & Gabbana and UNXD of jointly creating and promoting the DGFamily project, which promised buyers "high value" benefits to be delivered quarterly over two years. These benefits reportedly included digital outfits for the Decentraland metaverse, physical clothing, and live events for NFT holders. However, the lawsuit alleged that Dolce & Gabbana failed to deliver the complete set of promised benefits while retaining millions from NFT sales. Dolce & Gabbana USA sought to dismiss the lawsuit in January, arguing that it was a distinct entity not involved in the NFT activities of its Italian parent company. The U.S. arm contended that it had not engaged in any joint venture with UNXD or any other entity to sell, advertise, or promote NFTs. The firm maintained that the evidence presented in the complaint indicated that the NFT project originated from its parent company in Italy and did not sufficiently establish a connection between the U.S. and Italian entities. Judge Buchwald concluded that the lawsuit was "plainly insufficient to withstand D&G USA’s motion to dismiss," as it failed to differentiate between the actions of the U.S. and Italian companies, collectively referring to them as "Dolce & Gabbana." The amended lawsuit highlighted an "overlap in ownership, officers, directors, and personnel" between the two firms, including shared executives. However, it did not provide specific examples of how these executives were involved in the NFT project. Judge Buchwald stated that the plaintiffs had not adequately demonstrated that D&G S.R.L. completely dominated D&G USA, despite alleged shared employees and office space.