Steve Aoki Faces Class-Action Lawsuit Over MetaZoo Endorsements: Allegations of False Advertising and Unfair Trade Practices
Steve Aoki is currently facing a class-action lawsuit related to his Instagram posts promoting MetaZoo, a trading card and NFT company. Aoki, who became a part-owner of MetaZoo in 2021, collaborated extensively with the company, even releasing a collectible card series to coincide with his 2022 album HiROQUEST: Genesis. However, the lawsuit alleges that Aoki's Instagram posts did not disclose that he was being compensated for promoting the trading cards and NFTs.
The lawsuit, filed by Florida attorney Evan Berger, accuses Aoki and Matt Kalish, the co-founder of DraftKings, of false advertising and unfair trade practices for their social media endorsements of MetaZoo. While the company itself is not named as a defendant due to its bankruptcy and subsequent acquisition by GameQbator Labs, the lawsuit seeks to represent individuals who purchased MetaZoo products based on the misleading advertisements.
Berger claims that he was influenced by Aoki and Kalish's Instagram posts to purchase 26 MetaZoo NFT tokens, which were valued at over $150,000 in 2022 but are now deemed "worthless." The lawsuit estimates damages in the tens of millions, attributing a significant portion of MetaZoo's revenue to the undisclosed endorsements on social media by the defendants.
Representatives for Aoki, Kalish, and MetaZoo have not yet responded to requests for comment on the lawsuit. Aoki is one of several musicians who participated in the NFT trend of the early 2020s, with artists like The Chainsmokers and Snoop Dogg also releasing virtual tokens. However, the value of many NFTs declined when the crypto markets crashed in 2022, leading to legal actions against celebrities who promoted them, such as Justin Bieber and Madonna for their involvement in the "Bored Ape" NFT collection.
In conclusion, Steve Aoki's involvement in promoting MetaZoo through undisclosed endorsements on social media has led to a class-action lawsuit alleging false advertising and unfair trade practices. The lawsuit seeks to represent individuals who purchased MetaZoo products based on the misleading advertisements, with estimated damages in the tens of millions. Aoki's case is part of a broader trend of celebrities facing legal repercussions for their involvement in the NFT market during the early 2020s.