Dolce & Gabbana USA has been dismissed from a proposed class-action lawsuit over a troubled NFT venture launched by its Italian parent company, marking a major setback for the plaintiffs and raising questions about the future of the case.
On Friday, U.S. District Judge Naomi Reice Buchwald ruled that Dolce & Gabbana’s American arm cannot be held accountable for the alleged mismanagement of the luxury fashion brand’s “DGFamily” NFT project, which debuted in 2022. The decision hinged on the court's finding that Dolce & Gabbana USA operates independently from its Italy-based parent company, Dolce & Gabbana S.R.L.
NFT Buyers Allege $25M Project Was Abandoned
The lawsuit, initially filed in May 2024 and later updated in September, accused Dolce & Gabbana and its affiliates of abandoning their DGFamily NFT initiative after raising over $25 million. The NFTs were marketed with promises of exclusive perks—such as digital fashion items for the metaverse, physical merchandise, and invitations to live events—spread across two years.
According to the plaintiffs, those benefits never fully materialized. They claimed the U.S. and Italian entities functioned as “effectively the same company” and should be held jointly responsible for the failed project.
Court: No Proof D&G USA Was Involved
But the court didn’t agree. Judge Buchwald found that the lawsuit failed to clearly separate the roles of Dolce & Gabbana USA and its parent company. The complaint, she said, lumped both entities together under a single name—“Dolce & Gabbana”—without detailing what actions each actually took.
Dolce & Gabbana USA argued that it had no role in creating, promoting, or profiting from the NFT project. It emphasized that it had no partnership with UNXD, the Dubai-based marketplace that helped launch DGFamily. The judge agreed, noting the plaintiffs didn’t provide concrete examples of how U.S.-based staff were involved.
“Even if D&G S.R.L. allegedly shared some employees and office space with D&G USA,” the judge wrote, “that does not prove the U.S. entity was dominated or controlled to the extent required by law.”
Other Defendants Still Unserved
The ruling casts doubt on the case moving forward, as Dolce & Gabbana USA was the only U.S.-based defendant. Other named parties—UNXD and Bluebear Italia SRL, creator of the “inBetweeners” NFT series—are based overseas and have yet to be served with the complaint.
Without a clear path to hold a domestic party accountable, the plaintiffs may face challenges continuing their legal battle in U.S. courts.
