Dolce & Gabbana Escapes NFT Lawsuit: Judge Decides It’s Not the Italian Parent’s “Alter Ego”

Jakarta, Pintu News – A New York federal court has just ruled that Dolce & Gabbana USA Inc. cannot be held liable for a class action lawsuit alleging its Italian parent company has abandoned the “DGFamily” NFT project. Judge Naomi Reice Buchwald stated that D&G USA is not an “alter ego” of its parent company, so the lawsuit was dismissed.

Chronology of NFT Lawsuit against Dolce & Gabbana

The lawsuit was filed by a number of NFT buyers in May 2024, who accused Dolce & Gabbana – both in Italy and America – of failing to fulfill promises in the NFT DGFamily project launched since 2022. Under this project, buyers were promised “high-value” benefits such as digital apparel for Decentraland, exclusive physical apparel, and invitations to special events, with total NFT sales of more than $25 million (approximately IDR 406 billion, exchange rate 1 USD = IDR 16,287).

However, the plaintiffs claim that only some of the benefits were actually provided, while the remaining promises were not fulfilled and the proceeds of the NFT sales were not returned. In addition to Dolce & Gabbana USA, NFT marketplace UNXD (Dubai-based) and Bluebear Italia SRL (creator of the NFT inBetweeners collection) are also defendants, but have not yet been legally served by the US courts.

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Dolce & Gabbana USA Excuses and Arguments

D&G USA defended itself by emphasizing that it was never directly involved in the sale, promotion or creation of the NFTs. All DGFamily project activities were initiated and run by its parent company, Dolce & Gabbana SRL in Italy. They also rejected the notion of having entered into a joint venture with UNXD or any other party in the NFT project.

According to the court, the plaintiff failed to clearly distinguish the roles between D&G USA and the parent company in Italy. Although there was “overlap” in job titles, CEOs, and marketing teams, the plaintiff could not prove D&G USA’s specific involvement in the NFT project at issue.

Judge’s Decision: Insufficient Evidence

Judge Buchwald found the lawsuit too general and failed to show in detail D&G USA’s involvement in the alleged NFT fraud. He stated that “this lawsuit is clearly insufficient to withstand a request for dismissal from D&G USA,” as the plaintiff was unable to outline the role of each entity separately.

As D&G USA is the only US-based defendant, the future of the lawsuit against Dolce & Gabbana regarding NFTs is now a big question mark, unless there are further legal remedies against the overseas entity.

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This case demonstrates the legal complexities in cross-border NFT projects, where the boundaries of each entity’s liability are critical. Lawsuits that are not drafted with specificity and detail run the risk of failing in court, as experienced by the plaintiffs in the Dolce & Gabbana case.

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Reference

• Cointelegraph. Dolce & Gabbana’s US arm escapes NFT class-action lawsuit. Accessed July 15, 2025.