NFT buyers of Ice Cube’s BIG3 league have filed a class action lawsuit against the league in the Superior Court of California. The suit alleges “deceptive, fraudulent, and illegal marketing” by the league as part of its “offering and sale of unregistered securities in the form of non-fungible tokens.” The plaintiffs invested substantial sums based on representations that they would receive meaningful ownership rights, including team management decisions, season tickets, and financial participation in future team sales.
Key Allegations
The ownership rights the plaintiffs expected were part of perks from the 2022 sale of Ethereum-based NFTs from two tiers—“Fire” which was sold for $25,000 apiece, and “Gold,” which sold for $5,000 each.
League Response
A representative for the league did not immediately respond to requests for comment, but stated that “the plaintiffs are filing a public nuisance suit despite contractual obligations to resolve all such disputes through confidential arbitration.” The plaintiffs are seeking damages, restitution, declaratory relief, and other reliefs, and expect to add an amendment to the lawsuit in light of the league’s recent announcement to go public via a merger with a special purpose acquisition company (SPAC) that would value it around $290 million.
Based on reporting from crypto.news.