A U.S. federal judge has dismissed a proposed class-action lawsuit against Dolce & Gabbana USA, ruling that the American subsidiary cannot be held liable for its parent company’s DGFamily NFT project, which allegedly raised over $25 million.
🎯 Court Rules No “Alter Ego” Connection
In a decision issued by Judge Naomi Reice Buchwald, the court found insufficient evidence to deem D&G USA an “alter ego” of the Italian parent, Dolce & Gabbana SRL. Plaintiffs had argued that shared branding, executive overlap, and joint marketing tied the U.S. entity to the NFT venture — claims the court said were too vague and lacked specifics starthub.asiaEcopixelwear+11Cointelegraph+11Decrypt+11.
Despite noting overlaps—such as shared officers and office space—the judge emphasized these did not demonstrate the level of control needed to pierce the corporate veil Decrypt. As a result, the complaint was dismissed with the court indicating that further amendments were unlikely to succeed Coinlive+7Cointelegraph+7Decrypt+7.
💬 Background on the DGFamily NFT Project
Launched in 2022, DGFamily promised buyers exclusive perks—including digital outfits for Decentraland, physical apparel, and live event access—distributed over eight quarterly “drops.” Plaintiffs alleged the project failed to follow through, resulting in significant financial loss Ecopixelwear+9Cointelegraph+9Decrypt+9.
The original suit was filed in May 2024 by plaintiff Luke Brown, who claimed he lost approximately $5,800, and accused D&G entities of essentially orchestrating a “rug pull” by retaining funds without fulfilling promised benefits Ecopixelwear+7Decrypt+7Proactiveinvestors UK+7.
🔮 What’s Next?
With D&G USA dismissed and foreign defendants—including Italy-based Dolce & Gabbana SRL and Dubai-based UNXD Inc.—not yet served, the lawsuit faces significant hurdles moving forward Coinlive+6Cointelegraph+6Decrypt+6.
This ruling signals a possible dead-end for U.S.-based plaintiffs seeking recourse against Dolce & Gabbana USA, highlighting the complexities of cross-border liability in NFT projects.
