The crypto era was one to behold, the real example of a get-rich-quick scheme collapsing in real time in front of the world. Unfortunately, celebrities were among the first to get duped into allowing their images to be used for a quick bag. Lawsuits began mounting as a result, and the latest star to find themselves in the crosshairs of a class action is none other than Iggy Azalea. According to All Hip Hop, the “Fancy” rapper is being sued for allegedly misleading investors about her $MOTHER coin.
At the core of the lawsuit are claims that the promises of the features marketed as part of the memecoin weren’t entirely truthful. The false advertising, plaintiff Christopher Smith claims, essentially duped investors into buying the coin, which reportedly surged to a $200M market cap. However, the report claims that the coin has reportedly collapsed to roughly a $1M market cap– a 99.5% collapse of value.
“MOTHER’s market appeal was not based on technology, a whitepaper, or decentralized governance. Rather, it was based on Azalea’s personal celebrity, image, and brand. Every promotional act reinforced the message that MOTHER was authenticated by and inseparable from Azalea herself,” reads the complaint.
The lawsuit adds that the coin’s price also included “the market’s assessment of the represented utility, integrations, and institutional support.” It argues that the price collapsed because the features that added value to the coin never materialized or were delivered. “For purchasers, the primary harm was overpayment: they paid more for MOTHER than they otherwise would have paid absent Azalea’s utility, integration, and market-support representations,” the lawsuit reads.
Demanded Damages From Plaintiffs
It’s unclear how much is being asked in the class action lawsuit, but the report says that the complaint demands relief and damages for the investors. Iggy has yet to publicly react or respond. We’ll keep you posted on any more updates or responses.
