A federal judge has denied dismissal motions in a significant lawsuit concerning Bored Ape Yacht Club (BAYC) NFTs, targeting celebrities including Justin Bieber, Madonna, and others for alleged deceptive promotion practices.

The class action lawsuit, filed in December 2022, alleges that celebrities and companies engaged in "manufactured celebrity endorsements and misleading promotions" that led investors to make "losing investments at drastically inflated prices."

Key defendants in the case include:

• Yuga Labs
• Guy Oseary
• Adidas
• Multiple celebrities (Serena Williams, DJ Khaled, Snoop Dogg, Post Malone, Steph Curry)
• Sotheby's (added August 2023)

The lawsuit claims multiple violations of:

• California business and consumer laws
• Exchange Act
• Securities Act

Yuga Labs attempted to dismiss the case with a 60-page motion, arguing that:

• The NFTs don't qualify as securities
• No "materially false or misleading statements" were made
• No fraudulent schemes were involved

Justin Bieber's legal team specifically argued that his social media posts about Bored Apes were "non-actionable generalized and/or humorous statements."

Judge Fernando M. Olguin's ruling:

• Rejected dismissal motions without prejudice
• Set September 3rd deadline for new motions focusing on NFTs' securities classification
• Allowed defendants to submit renewed dismissal motions if NFTs are classified as securities

The case highlights ongoing debates about celebrity endorsements in cryptocurrency markets and the classification of NFTs as securities.

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