Dolce & Gabbana Sued Over Failed Metaverse Fashion Delivery

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Dolce & Gabbana USA Inc. faces a lawsuit from a dissatisfied customer over a failed NFT metaverse fashion project. The customer, who spent $6,000 on NFTs that promised exclusive digital outfits and other benefits, claims the value of these NFTs dropped by 97% due to the company’s mismanagement.

The luxury fashion house sold Non-Fungible Tokens (NFTs) that were marketed as offering a mix of digital, physical, and experiential benefits. These NFTs, known as DGFamily NFTs, were purchasable on the Ethereum cryptocurrency blockchain and were supposed to grant access to digital rewards, physical products, and exclusive events.

According to a complaint filed Thursday in Manhattan federal court, Dolce & Gabbana failed to deliver the NFTs and their associated benefits on time. The digital outfits were delivered 20 days late and could only be used on a metaverse platform with minimal users. Even after the digital outfits were released, they remained unusable for another 11 days because the company had not obtained the necessary approval from the metaverse platform.

The lawsuit, brought by Luke Brown on behalf of a proposed class of purchasers, claims that Dolce & Gabbana has a pattern of promising products they fail to deliver and then abandoning the projects. Brown alleges he lost $5,800 on the NFTs he bought.

The complaint also names the NFT marketplace UNXD as a defendant. Both Dolce & Gabbana and UNXD have not yet responded to requests for comment.

The case is Brown v. Dolce Gabbana USA Inc., 24-cv-03807, US District Court, Southern District of New York.