On July 11, 2025, a New York federal court dismissed a class-action lawsuit against Dolce & Gabbana USA Inc., dealing a blow to claims over the Italian fashion brand’s DGFamily NFT project, per Cointelegraph. Filed in May 2024 by plaintiff Luke Brown, the suit alleged that Dolce & Gabbana, alongside UNXD and inBetweeners, defrauded investors by failing to deliver promised benefits, retaining $25 million from the 2022 NFT project.
The DGFamily NFTs, built on Ethereum and promoted for Decentraland metaverse use, promised digital outfits, physical products, and exclusive events, but delays and limited usability led to a 97% value drop, per Bloomberg.
Dolce & Gabbana USA argued it was not involved in the NFT project, which originated from its Italian parent, Dolce & Gabbana SRL, per Law360. Judge Naomi Reice Buchwald agreed, dismissing the case against the US arm on July 11, 2025, citing the lawsuit’s failure to distinguish between the two entities.
The complaint claimed shared leadership, including a CEO and IT executives, but lacked specific evidence tying Dolce & Gabbana USA to the DGFamily project, per Cointelegraph. This leaves the suit’s future uncertain, as UNXD (Dubai-based) and Bluebear Italia SRL (Italy-based) were not served, per CourtListener.
The lawsuit accused Dolce & Gabbana of a “rug pull,” alleging market manipulation through wash trades to inflate DGFamily NFT prices, violating the Securities Exchange Act of 1934, per The Fashion Law. Digital outfits, meant for Decentraland, arrived 20 days late and were unusable for an additional 11 days due to unsecured platform approvals, per CoinDesk.
With Decentraland’s low user base, the NFTs’ utility was limited, causing a $5,800 loss on Brown’s $6,000 investment, per Cointelegraph. The amended complaint added Dolce & Gabbana’s Global Innovation Manager Christian Barbujani and Head of New Media Davide Sgherri, accusing them of deceptive marketing, per The Fashion Law.
The dismissal highlights challenges in the NFT market, where sales hit $2.8 billion in H1 2025 but trading volumes declined, per Cointelegraph. Historical cases, like the SEC’s $6.1 million fine against Impact Theory for unregistered NFT securities, suggest regulatory risks for Dolce & Gabbana SRL if the suit proceeds against non-US defendants, per PYMNTS.
Decentraland’s MANA token, trading at $0.27, may face indirect pressure if NFT sentiment sours, per CoinMarketCap. Investors should monitor DGFamily floor prices (0.0236 ETH on OpenSea) and SEC developments via Cointelegraph or posts on X. The case underscores the need for transparency in Web3 ventures, with Dolce & Gabbana’s experience a cautionary tale for brands like Gucci entering the space, per Medium.
