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NFT Lawsuit Against Dolce And Gabbana in Doubt as US Arm Cleared

NFT lawsuit against Dolce And Gabbana is now in doubt after a U.S. judge cleared the fashion house’s American division from responsibility in the $25 million DGFamily dispute.

This marks a pivotal moment for NFTs in luxury retail. It shows how corporate structure and legal definitions can shape responsibility in digital ventures. Here’s a detailed look at what happened, why it matters, and where the case may go next.

1. NFT Lawsuit Background: Inside the DGFamily NFT Project

In 2022, Dolce & Gabbana, in partnership with UNXD and Bluebear Italia, launched the DGFamily NFT collection. This ambitious drop promised holders a rich array of benefits, including:

Digital wearables for Decentraland
Exclusive physical fashion pieces
Quarterly events and live experiences

The initiative aimed to marry high fashion with next-gen digital assets. With over $25 million generated from the NFT sale, expectations were high—but so were the stakes.

2. Class‑Action Claims: Promises Undelivered

In May 2024, plaintiff Luke Brown filed a class-action lawsuit, later amended in September. The suit alleged that Dolce & Gabbana failed to provide the full package of promised benefits and intentionally delayed NFT delivery decreasing the tokens’ value.

Brown claimed losses reaching $5,800 per NFT and asked for damages of $25 million pointing to what some buyers called a “rug pull.”

3. Why the US Arm Was Cleared

In January 2025, Dolce & Gabbana USA moved to dismiss the claims. Their argument: the U.S. company did not develop, sell, advertise, or deliver the DGFamily NFTs. Instead, it was merely a separate legal entity from its Italian parent.

On July 11, Judge Naomi Reice Buchwald agreed. Her ruling cited:

No evidence linking the U.S. arm to NFT operations
Lack of “alter ego” status between subsidiaries
Insufficient facts to show personnel overlap constituted control binance.com+15cointelegraph.com+15crypto.news+15 ainvest.com+4fashionunited.in+4fashionunited.uk+4 mexc.com+2cryptonews.com+2cryptorank.io+2 crypto.news+1ainvest.com+1

4. What the Ruling Means for the Lawsuit

With Dolce & Gabbana USA dismissed, the case loses its core U.S.-based defendant. Remaining targets include their Italian parent, UNXD, and Bluebear Italia entities outside U.S. jurisdiction or yet to be served.

Legal experts believe that without the U.S. division, the case might collapse, as U.S. courts struggle to enforce claims against foreign entities in the NFT space.

5. Broader Implications for Fashion NFTs

This ruling sets a crucial precedent in luxury brands’ digital strategies:

Legal Shielding: Brands can limit exposure by keeping NFT ventures separate from core corporate entities
Consumer Risk: Buyers may find limited legal recourse if they transact with international arms or partners
Corporate Clarity: Clear structure and contracts are vital when offering NFTs globally

As the luxury industry continues exploring NFTs and the metaverse, careful legal design will be essential to avoiding liabilities.

Expert Reaction: Mixed Signals in the NFT Space

Some analysts see the dismissal as a relief for brands, but consumer advocates voice concern. They warn that brands may shield NFT liabilities by shifting digital projects offshore. For buyers, this means reading fine print and knowing exactly which entity is responsible when purchasing high-value digital assets.

Where This Case Goes Next

Italian parent company may still face litigation, but enforcement could be tough.
UNXD and Bluebear Italia remain targets if they’re served appropriately.
A second amended complaint against the U.S. entity seems unlikely Judge Buchwald has flagged the pleaded facts as insufficient crypto.news.
Consumers could pursue arbitration under contractual terms, depending on where their NFTs were sold.

Conclusion: A Setback for Buyers, a Caution for Brands

The dismissal of Dolce & Gabbana USA from the DGFamily NFT lawsuit is a major point in NFT law. It highlights how digital asset liabilities can be insulated from U.S. consumers, depending on corporate structure. Luxury brands must now face the balance between innovation and accountability.

Muskan Goyal