Sotheby's and Celebrities Including Madonna, Paris Hilton, and Justin Bieber Face Lawsuit Over Bored Ape NFTs
Prominent auction house Sotheby's and several high-profile celebrities, including Madonna, Paris Hilton, and Justin Bieber, are currently embroiled in a lawsuit related to their association with the Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs).
The Lawsuit's Genesis and Allegations
The legal action stems from accusations that these celebrity endorsements artificially inflated the value of NFTs, resulting in substantial financial losses for investors. Sean Masson from Scott+Scott, the law firm representing the Bored Ape investors, explained:
The endorsement from Sotheby's significantly contributed to the misleading promotion of the NFT collection as a legitimate investment.
One pivotal point of contention revolves around Sotheby's auction in September 2021. During this auction, conducted on their metaverse platform, 101 Bored Ape NFTs were sold for an astounding £24.4 million ($51.7 million), surpassing projected values of $20-30 million.