A federal judge dismissed the lawsuit against Yuga Labs, ruling Bored Ape Yacht Club (BAYC) NFTs are not securities. The decision sets a precedent for NFTs as digital collectibles, not investment contracts. The court found no profit expectation linking buyers to Yuga Labs, crucial under the Howey Test.

Judge Olguin ruled that the plaintiffs failed to show BAYC NFTs or ApeCoin met the Howey Test criteria. The lawsuit claimed Yuga Labs misled buyers about profit expectations. The court concluded the NFTs were marketed as digital collectibles, not investments seeking returns, strengthening the argument for NFTs as collectibles.

Legal experts noted the significance of the ruling, stating that general statements about value do not equate to promises of profit. The ruling clarifies existing US securities regulations, emphasizing NFTs designed as digital collectibles do not fall under such laws. The decision impacts ongoing cases in the NFT space.

Nike and StockX settled their legal battle over sneaker-linked NFTs, canceling an October trial and dismissing claims with prejudice. The lawsuit began in 2022 with Nike accusing StockX of trademark infringement over “Vault” NFTs using Nike sneakers. The settlement prevents further reputational and legal risks for both parties.

Nike’s web3 arm, RTFKT, will shut down by early 2025, shifting to legacy preservation. The closure sparked investor backlash, with some claiming they were left with worthless digital assets. The settlement spares both Nike and StockX from additional legal and reputational risks.

Read more at Yahoo Finance: Judge Dismisses Yuga Labs Lawsuit, Rules BAYC NFTs Aren’t Securities