United States – Sheppard Mullin Secures Dismissal For Dolce & Gabbana USA In NFT Lawsuit
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Sheppard Mullin Richter & Hampton
Sheppard Mullin is a full service Global 100 firm with over 1,000 attorneys in 16 offices located in the United States, Europe and Asia. Since 1927, companies have turned to Sheppard Mullin to handle corporate and technology matters, high stakes litigation and complex financial transactions. In the US, the firm’s clients include more than half of the Fortune 100.
Sheppard Mullin obtained a complete dismissal of all 12 claims against Dolce & Gabbana USA, Inc. (“D&G USA”) including federal securities, commodities, negligence…
United States
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Sheppard Mullin obtained a complete dismissal of all 12 claims
against Dolce & Gabbana USA, Inc. (“D&G USA”)
including federal securities, commodities, negligence, fraud and
consumer protection claims in a putative class action challenging
the company’s involvement in a digital NFT program.
The plaintiffs’ lawsuit advanced a novel and meritless
theory that NFT offerings constituted securities, and that alleged
shortcomings in the delivery of NFT-associated benefits amounted to
securities fraud and a litany of consumer and common-law
violations. In essence, plaintiffs sought to recast the sale of
digital collectibles as unlawful securities activity, relying on
broad and undifferentiated allegations as to D&G USA’s
role.
The complaint fundamentally misrepresented the legal nature of
NFTs, conflating them with regulated securities despite the absence
of any investment features or rights typically associated with a
security. Through a targeted and comprehensive motion to dismiss,
defendant established that the complaint lacked any specific
allegations to support the theory that NFTs constitute securities
and failed at law to tie D&G USA to the conduct at issue,
relying instead on impermissible group pleading and speculative
assertions about shared management with the other defendants.
The court agreed, granting D&G USA’s motion to dismiss
the 12 claims with prejudice and denying plaintiffs further leave
to amend.
The Sheppard Mullin team was led by partner Paul Garrity, with
assistance from associates Katherine Anne Boy Skipsey and Alicia
Burrell.