A federal judge has denied dismissal motions in a significant lawsuit involving Bored Ape Yacht Club NFTs, targeting celebrities including Justin Bieber, Madonna, and numerous other high-profile defendants.

The class action lawsuit, filed in December 2022, alleges that celebrities and companies engaged in deceptive practices through "manufactured celebrity endorsements and misleading promotions," causing investors to make poor investments at inflated prices.

Key defendants include:

• Celebrities: Justin Bieber, Madonna, Snoop Dogg, Post Malone, Steph Curry
• Companies: Yuga Labs, Adidas, Sotheby's
• Industry figures: Guy Oseary

The lawsuit claims multiple violations of California business and consumer laws, along with violations of the Exchange Act and Securities Act. The plaintiffs argue that celebrity promotions and alleged connections to the collapsed FTX exchange led to significant losses for investors.

Yuga Labs attempted to dismiss the case with a 60-page motion, arguing that:

• The NFTs don't qualify as securities
• No materially false or misleading statements were made
• No fraudulent scheme existed

Judge Fernando M. Olguin, while noting concerns about certain claims, has ordered the court to first determine whether Bored Ape NFTs qualify as securities under the Securities and Exchange Acts. The parties must submit a proposed schedule by September 3rd to address this crucial classification issue.

If the NFTs are classified as securities, defendants may submit new dismissal motions or request reinstatement of their original motions.

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