Dolce & Gabbana USA Wins Major Legal Victory Over NFT Lawsuit

In a big legal triumph, Dolce & Gabbana USA emerged victorious when a federal court ruled it was not liable in a class-action lawsuit tied to its $25 million DGFamily non-fungible token (NFT) project.

The Origins of the DGFamily NFT Project

Launched in April 2022, the DGFamily NFT initiative was a collaborative effort between Dolce & Gabbana, UNXD, and inBetweeners. The project promised its buyers exclusive digital and physical perks, including metaverse wearables, luxury fashion items, and invitations to VIP events. With over 5,000 NFTs sold, the enterprise generated tens of millions in revenue.

However, prices for these tokens ranged from 1.224 ETH to 40 ETH (roughly $3,600 to $120,000 at launch), and never all guarantees were fulfilled. According to the plaintiffs, only two out of the eight advertised advantages materialized, many were defective, and unexpected shipping and customs fees were charged. By the top of 2023, the project was deemed a failure, prompting legal proceedings.

The Lawsuit and Allegations

Initiated by Luke Brown, who claimed a lack of $5,800 on a DGFamily NFT, the class-action suit accused Dolce & Gabbana and UNXD of false promoting and failing to deliver on their guarantees.

The lawsuit also asserted that Dolce & Gabbana USA and its Italian parent were essentially one entity, sharing leadership, staff, and branding. It further claimed that the NFTs were marketed as unregistered securities and that the secondary market was manipulated to inflate demand artificially.

The Court’s Ruling and Justification

In January 2025, Dolce & Gabbana USA requested dismissal of the case, arguing it was a separate legal entity not involved within the NFT project’s marketing, sales, or development. U.S. District Judge Naomi Reice Buchwald sided with the corporate, citing insufficient evidence to label Dolce & Gabbana USA as an “alter ego” of its Italian parent company.

The judge noted the lawsuit’s failure to differentiate between the roles of the U.S. and Italian entities, deeming the arguments “plainly insufficient” to stop dismissal.

Implications and Next Steps

The way forward for this lawsuit stays uncertain, particularly as other defendants like UNXD and Bluebear Italia SRL haven’t been formally addressed within the grievance. Judge Buchwald suggested that further amendments may not achieve success, potentially weakening the case.

This ruling highlights the complexities of holding international firms accountable in NFT-related disputes and will set a precedent for similar cases within the burgeoning crypto industry. The dismissal of the $25 million DGFamily NFT lawsuit against Dolce & Gabbana USA is a noteworthy development for each the luxurious brand and the NFT sector.

While the U.S. subsidiary has been cleared, questions linger regarding the Italian parent company and its partners’ accountability. This case underscores the challenges investors face in recovering funds when digital asset ventures fail to deliver on their guarantees. As the crypto and NFT landscape continues to evolve, such legal battles may develop into increasingly common.

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