US judge dismisses NFT lawsuit against Dolce & Gabbana's US subsidiary

PANews reported on July 14 that, according to Decrypt, U.S. Federal Judge Naomi Reice Buchwald dismissed the class action lawsuit against Dolce & Gabbana's U.S. subsidiary (D&G USA). The lawsuit alleged that its Italian parent company defrauded through the "DGFamily" Non-Fungible Token project, claiming to provide digital/physical luxury goods and offline event rights, raising over $25 million in eight phases, but terminating operations after completing two phases. However, the judge believed that although D&G USA shared brand identification and some executives with the parent company, the plaintiff's evidence showed that the Non-Fungible Token project's smart contract deployment, marketing decisions, and rights redemption were independently operated by the Italian team. The U.S. subsidiary only provided routine local compliance support and did not meet the New York state law's "substantial control" standard, thus could not be held jointly liable.