- Dolce & Gabbana USA has been dismissed from the DGFamily NFT class‑action lawsuit by a New York federal court
- The US arm has not been deemed an “alter ego” of its Italian parent, as allegations failed to establish control or involvement
- With the only US defendant dismissed and foreign entities unserved, the $25 million lawsuit has lost its primary foothold
A US federal judge has dismissed Dolce & Gabbana USA from a class‑action suit over the DGFamily NFT collection, determining that the US affiliate was not responsible for the Italian parent’s alleged failures. Though the project raised over $25 million and promised digital, physical, and experiential perks, the court found no sufficient ties to the American subsidiary. With the only readily served defendant now out of the picture, the litigation hinges on foreign defendants that have not been formally served.
Complaint Judged to be “Plainly Insufficient”
The lawsuit, initially filed in May 2024 and amended in September, alleged that the Italian company, in partnership with UNXD and Italy’s Bluebear Italia, sold 5,000 DGFamily NFT packs, bringing in $25 million. Buyers claimed the token drops promised quarterly benefits, including digital wearables for the Decentraland metaverse, physical clothing, and exclusive events, many of which were either delayed or never fulfilled.
Recently, Judge Naomi Reice Buchwald of the Southern District of New York concluded that the plaintiff’s plea didn’t show that Dolce & Gabbana USA “completely dominated” its Italian parent, despite noting some shared personnel and office space. Instead, she found the complaint “plainly insufficient”, rejecting group‑pleading tactics that treated both entities interchangeably.
Plaintiffs’ Job Suddenly Got Harder
The ruling comes after Dolce & Gabbana USA moved to dismiss the case this January, asserting it had no role in creating, marketing, or selling the NFTs and that the DGFamily project was entirely managed by its Italian parent. The court agreed, emphasising that shared branding and some overlap in staff did not equate to control over the NFT venture.
With the US entity now out of the frame, the class action faces an uphill battle, given that Dubai-based UNXD and Italy’s Bluebear Italia, the remaining named defendants, have not yet been served and have no US outposts. Investors maintain that they suffered damages due to a “rug pull,” but whether they can pursue relief directly against foreign firms remains uncertain.
