Yuga Labs has been hit with more legal challenges this week, as a consumer rights firm takes aim at the NFT project. Already, the company is under the very sizeable eye of the US Securities and Exchange Commission, but now, this includes Scott+Scott.
The legal firm stated in a press release from November 23rd, that it aims to determine whether the company “or certain of its officers, directors, promoters and corporate insiders violated federal securities laws.”
Scott+Scott cited that the overall decline in market value of the company’s assets is the foundation for both its investigation and lawsuit. All the while, the SEC continues to investigate it as part of a broader question of whether NFTs qualify as securities, an argument that can carry a lot of weight long-term.
As part of its investigation, and due to the downturn in the market, Scott+Scott has encouraged anyone that has been affected by heavy losses due to their Yuga Labs asset to come forward as part of their case.
This call for individuals opens up a broad church of NFT holders, due to Yuga Labs’ collection consisting of Bored Ape Yacht Club, Mutant Ape Yacht Club, ApeCoin and more. What’s more, depending on the scope of evidence, the firm may be getting positioned to launch a class-action lawsuit.