How Dolce & Gabbana USA Dodged a $25M NFT Lawsuit—and Why It Matters

A New York federal judge just dealt a major blow to NFT buyers suing Dolce & Gabbana over an abandoned project. Here’s what went down.

The Setup

Back in 2022, D&G launched “DGFamily”—an NFT collection that promised buyers serious perks: digital outfits for Decentraland, actual physical clothing, and exclusive live events. Sounds good, right? The catch: investors claim the Italian luxury brand pocketed over $25 million from sales while ghosting on most of the promised deliverables.

NFT holders filed a class-action lawsuit in May 2024 (updated September) targeting both Dolce & Gabbana’s Italian parent company and its U.S. arm, along with Dubai-based NFT marketplace UNXD Inc.

The Plot Twist

On Friday, Judge Naomi Reice Buchwald ruled that Dolce & Gabbana USA Inc. is a separate legal entity from its Italian parent—meaning it gets booted from the lawsuit entirely.

D&G USA’s defense: “We’re not involved in the NFT game. That’s all Italy’s operation.” The company argued it had zero involvement in creating or promoting DGFamily, and therefore can’t be held liable.

The judge agreed, finding that the plaintiffs failed to prove D&G USA was merely an “alter ego” of its parent company. While there were overlapping executives and shared office space between the two entities, the lawsuit didn’t show specific examples of how these ties connected to the NFT project.

What Happens Now?

Here’s the problem: D&G USA was the only U.S.-based defendant in the suit. Without it, the lawsuit’s future is murky. The other defendants—UNXD (Dubai-based) and Bluebear Italia (Italy-based)—were never even properly served with the complaint.

So NFT buyers are basically back to square one. The core defendant (the Italian parent company) remains, but proving liability just got a lot harder.

The Bigger Picture

This case highlights the legal gray area around NFT projects—especially when big-name brands get involved. Luxury companies launched into the NFT space with bold promises, but delivery often fell short. Whether buyers can actually recover their investment remains an open question.

One thing’s clear: corporate structure matters in lawsuits. Separating your U.S. and international operations can protect you from liability—if the paperwork is clean enough.