- A U.S. federal judge ruled that Dolce & Gabbana USA is not liable for issues tied to its parent company’s DGFamily NFT project.
- The court found no evidence that Dolce & Gabbana USA was an “alter ego” or controlled by the Italian parent company that launched the NFTs.
- The DGFamily project raised more than $25 million from investors who expected luxury goods and exclusive access.
- The court dismissed the case against the U.S. entity, leaving international defendants unserved and the lawsuit at a setback.
- Buyers alleged the project failed to deliver promised benefits, and efforts to amend the lawsuit were rejected.
A federal judge dismissed a proposed class-action lawsuit against Dolce & Gabbana USA, finding it was not responsible for a failed non-fungible token (NFT) project known as DGFamily. The decision was issued in New York on Friday, with the judge explaining the U.S. company did not operate as an extension of its Italian parent, Dolce & Gabbana SRL.
The DGFamily project had raised over $25 million by offering NFTs with promises of digital rewards and exclusive access to luxury items. The lawsuit claimed buyers were promised “digital rewards, physical products, and exclusive access to events” in exchange for their cryptocurrency investments across eight quarterly NFT “drops” over two years.
According to the lawsuit, holes in the project included delays and non-delivery, such as the first digital release being dropped 13 days late and digital outfits not being usable in Decentraland until after further delays. The complaint argued both U.S. and Italian arms were effectively the same entity because they shared executives, office space, and operations.
Judge Naomi Reice Buchwald wrote there was not enough evidence of “complete domination and control” of Dolce & Gabbana USA by its Italian parent. She noted the plaintiffs failed to specify which entity committed alleged misconduct, stating, “The operative pleading refers to both D&G USA and D&G S.R.L. as ‘Dolce & Gabbana’ and attributes all misconduct to this shared moniker, without differentiating what each entity did.”
The court also blocked further amendments to the complaint, pointing out that the plaintiff already had an opportunity to address these issues after being notified of legal deficiencies.
While Dolce & Gabbana USA was the main U.S. entity named, other defendants—Dubai-based UNXD Inc. and Italy-based Bluebear Italia SRL—were not served with the complaint, causing further delays in the case. Hundreds of buyers have alleged that the DGFamily NFT initiative was abandoned after funds were collected.
As NFT markets cool from their 2021–2022 peaks, many similar projects have faced accusations of failure or fraud. Proving liability against related foreign companies continues to be complex when international legal boundaries are involved.
For more details on the dismissal, see the official court document here. To read the amended complaint, click here.
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