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Jimmy Fallon, Gwyneth Paltrow, Madonna sued for hawking NFTs

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A slew of celebrities — including Jimmy Fallon, Gwyneth Paltrow and Madonna — are being accused of fraud for hawking Bored Ape Yacht Club NFTs, in line with a recent federal lawsuit.

The group of plaintiffs claim that the A-listers peddled the non-fungible tokens — which have plummeted in value within the last 12 months — without disclosing their investment in the corporate behind them, Yuga Labs.

“The Company’s entire business model relies on using insidious marketing and promotional activities from A-list celebrities which can be highly compensated (without disclosing such), to extend demand of the Yuga securities,” in line with the grievance filed Thursday in US District Court for the Central District of California.

The proposed class-action suit says the famous NFT-backers committed fraud “by convincing potential retail investors that the value of those digital assets would appreciate.”

Now, a few of those investments are price about 10% of their original value.

The suit claims celebs defrauded fans after they promoted Bored Ape Yacht Club NFTs.NurPhoto via Getty Images

Other celebs named within the suit include: Justin Bieber, Kevin Hart, Stephen Curry, Serena Williams and her husband Reddit CEO Alexis Ohanian, Snoop Dogg, The Weeknd, and DJ Khaled. Adidas and Jimmy Fallon’s production company Election Hot Dog are also named as defendants.

The suit claims that talent manager Guy Oseary was behind many of the promotions, recruiting famous people in exchange for payment through a crypto firm, Moonpay, by which he had also invested. This also helped Moonpay rake in money, in line with the grievance.

Fallon did a segment on NFTs on NBC’s “The Tonight Show” in November 2021, telling viewers he got his first Bored Ape Yacht Club NFT through Moonpay — without saying he had a stake in Moonpay, the suit alleges.

The talk show host and NBC didn’t tell the audience that “this purportedly organic segment on the Tonight Show was in point of fact a paid commercial for the BAYC collection of NFTs and MoonPay,” the grievance states. 

Jimmy Fallon promoted NFTs on his show without disclosing his own financial stake, in line with the suit.Patrick McMullan via Getty Image

Actress Gwyneth Paltrow attends the Gwyneth Paltrow is amongst the numerous celebrity defendants. Getty Images

The suit also says Bieber fraudulently claimed he purchased an NFT for $1.3 million, when it was actually gifted to him in exchange for promotion. 

Yuga Labs said in a press release it believes the suit to be without merit.

“In our view, these claims are opportunistic and parasitic. We strongly imagine that they’re without merit, and sit up for proving as much,” Yuga Labs told the Hollywood Reporter, which first reported the suit.

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