Bored Ape NFT Creator, Celebrity Promoters Win Bid for Dismissal

Yuga Labs Inc. and a raft of celebrities, including Madonna , Paris Hilton and Justin Bieber, don’t have to face a securities suit brought by Bored Ape Yacht Club NFT purchasers, a federal court ruled.

The nonfungible tokens—and one cryptocurrency—don’t meet the legal test for securities, Judge Fernando M. Olguin said for the US District Court for the Central District of California. But the token buyers, who sued on behalf of a proposed class, will have a chance to re-plead, he said.

The case is among several targeting celebrities for allegedly promoting unregistered securities. Celebrities and YouTube influencers largely ...