In short
- Lawyers of the defense for YouTubers Kyle Forgear and John Shahidi have moved to dismiss a fraud with regard to their Metacard NFT project, stating a lack of specific false claims.
- The lawsuit focuses on claims that buyers were misled by promises of exclusive benefits and community access linked to the Metacard NFT.
- They claimed that the plaintiff refused a full reimbursement and received the promised benefits, so that the case disputed by law.
Lawyers for lawyers for YouTubers Kyle Forgear and John Shahidi, also known as the Nelk Boys, have moved to dismiss a Class Action right that accuses them of fraud on their full Send Metacard NFT project.
Lawyers for the Nelk boys argued that the claimant rejected a full reimbursement and that the complaint is missing specific false claims.
The lawsuit was brought on behalf of Metacard NFT buyers in January, claiming that the defendants had misled consumers with promises of exclusive benefits and access to the community.
It is also claimed that the Metacard program incorrectly presented the Metacard program before January 19, 2022, which led the claimant to buy a token on that date.
The lawsuit claimed that after the NFTs were sold, the defendants continued to make misleading statements to delay the plaintiff and other potential class members to realize that they were misled.
“The false and misleading statements of the defendants were widely distributed by press releases, messages on social media, YouTube videos, podcasts and other promotional materials with regard to complete shipping and metacards,” the complaint explained.
In a motion submitted on April 17 in the US district court for the central district of California, the defense for the Nelk Boys argued that the complaint does not meet the basic fraud standards and is disputable due to the repayment offer.
“After the wider NFT market had collapsed, the defendants offered every metacard holder – including the plaintiff – a full repayment plus interest, with these claims fighting,” the lawyers wrote. “The plaintiff can regret his purchase – and reject a full reimbursement. But regret does not commit fraud. The complaint must be rejected.”
Founded by Forgeard and Jesse Sebastiani in 2010, the Nelk boys are a group of Canadian-American entertainers known for their joke videos and a brand with a party theme that includes the entire podcast, merchandise and alcoholic drinks. De Nelk -boys have 8 million subscribers on YouTube and 674,000 followers on X.
The Nelk boys launched the Metacard NFT project in January 2022. The collection of 10,000 Ethereum NFTs, each sold for around 0.8 ETH, at that time about $ 2,300, and collected around $ 23 million.
From the moment of writing, the collection has fallen by 91% to a floor price of $ 111, according to Coingecko data.
The defense said that the complaint has not not identified a specific incorrect representation of affairs, false statements or evidence or evidence that the plaintiff has relied on trusted in the purchase of the Metacard NFT and argued that the alleged promises largely corresponded to the benefits that the claimant received who received.
“The claimant’s claims rise and fall on what was said before he bought his metacard. But the complaint never identifies a presale statement. That is dispositive,” said the defense. “All the other of comments after sale to generalities and regret is legally irrelevant.”
Lawyers for the claimants and the defendants did not respond Decrypts Request for comments.
Published by Sebastian Sinclair and Josh Quitittner
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