Law firm Scott+Scott is preparing to file a class action lawsuit against Yuga Labs behind the immutable token collection by the Bored Ape Yacht Club (BAYC) and the ApeCoin project token (APE).

The company “unreasonably encouraged” investors to purchase its “financial products,” according to the statement. Yuga Labs allegedly used their celebrity ads to boost NFT and coin prices.

“Once it becomes clear that advertised growth is purely promotional […]“Retail investors are left with tokens that lost more than 87% of their inflated prices on April 28, 2022.”

The firm is in the preliminary stages to seek participants in the class action lawsuit. The complaint has not yet gone to court.

After its launch on March 17, APE traded at $8.5. On April 28, the price of the token reached $27.5 and has dropped to $6.2 at the time of writing. The coin has lost about 78% from its peak.

Crypto enthusiasts on Twitter urged investors to “take responsibility for their own actions”.

So there’s a class action lawsuit @yugalabs investors were “inappropriately encouraged to purchase financial products created by Yuga Labs”.

It’s so ridiculous😂 Take responsibility for your own actions, folks. https://t.co/WeuVVLNGv6 pic.twitter.com/7c9Jywvv9V

— Kevin Wu 🦾🤖🦾 (@kevwuzy) July 24, 2022

Another user described potential plaintiffs as “a bunch of crazy people” buying APEs “on high”.

Lolz is against this case @yugalabs only a group of people went crazy because they bought the top of the house $APE There is ApeCoin chart and rekt. 😂 pic.twitter.com/8v8pOdg1mg

– chiefdisco.eth ᵍᵐ 🍌 (@SoapBoxCar) July 24, 2022

BAYC has previously been supported by Eminem, Snoop Dogg, Madonna and other celebrities.

Recall that in March Yuga Labs raised $450 million in a $4 billion investment round.

In early May, ApeCoin dropped 30% with the launch of the Otherside metaverse. On the same day, NFT marketplace OpenSea announced the addition of APE as a payment method.

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