Italian luxury fashion house Dolce & Gabbana has won a significant legal victory in a class-action lawsuit alleging the brand failed to deliver on promised benefits tied to its $25 million DGFamily NFT project.
According to court documents released on July 11, a New York federal judge has dismissed all claims against Dolce & Gabbana USA Inc., the only U.S.-based defendant in the suit. The ruling deals a major blow to the broader case brought by lead plaintiff Luke Brown, who had accused multiple entities of fraud and unmet obligations.
The court determined there was not enough evidence to hold the American subsidiary accountable for the alleged misconduct of its Italian parent company, Dolce & Gabbana SRL. Despite claims of shared leadership, personnel, and branding, the judge ruled that Dolce & Gabbana USA did not function as the “alter ego” of its parent and had no direct involvement in the NFT offering.
The lawsuit, initially filed in May 2024 and later amended in September, alleges that Dolce & Gabbana and its Dubai-based partner UNXD sold high-value NFTs under the “DGFamily” label with the promise of exclusive digital fashion assets, physical merchandise, and VIP event access, to be distributed quarterly over two years. According to the complaint, these perks were delayed, only partially delivered, or never provided—leading to losses of up to 97% in NFT value for some purchasers.
Brown, who claimed to have lost $5,800 on a DGFamily NFT, sought to represent a broader class of affected buyers. The suit also named UNXD and Bluebear Italia SRL—the creator of a related NFT collection called “inBetweeners”—but neither of the foreign entities has been formally served as of now.
In her ruling, Judge Naomi Reice Buchwald rejected the argument that shared personnel or office space between the U.S. and Italian arms of Dolce & Gabbana was sufficient to establish legal responsibility. Citing legal precedent, she wrote, “Overlapping ownership and personnel alone cannot establish an alter ego relationship.”
Dolce & Gabbana USA had moved to dismiss the case in January 2025, arguing that it played no role in the development, promotion, or sale of the NFTs. The company stated that the project was solely managed by Dolce & Gabbana SRL and international partners, including UNXD.
With the dismissal of Dolce & Gabbana USA, the future of the class-action lawsuit remains unclear.
The case is part of a growing wave of litigation surrounding NFT ventures. Earlier this year, several high-profile disputes reached resolution: in January, DraftKings settled with the NFL Players Association over NFT rights involving player likenesses; in April, Shaquille O’Neal agreed to an $11 million settlement in a class-action suit tied to his promotion of the Solana-based “Astrals” NFT project.
