The news follows the collapse in value of celebrity-promoted collectibles. Four plaintiffs have reportedly been named in a class action. The lawsuit also accuses Sotheby’s of having a connection with the creator of the NFTs, Yuga Labs, in order to artificially inflate the value of the collectible.
CNN reports that Sotheby’s is just one of 30 defendants named in the filing. Justin Bieber and Paris Hilton are among the celebrities accused of promoting the NFT collection without disclosing their financial ties to the company.
As of May 2022, the collectibles were selling for at least $400,000. According to CoinGeckoa cryptocurrency market watcher, the NFT can now come in at just $52,445.
“Sotheby’s statements that the undisclosed buyer was a ‘traditional’ collector gave the impression that the NFT (Bored Ape Yacht Club) market had opened up to the general public” explains the plaintiff’s legal case, via CNN. Earlier this year, eight other celebrities were indicted by the Securities Exchange Commission (SEC) for failing to meet their obligations.