Judge Dismisses Lawsuit Against Yuga Labs Over NFT Claims

A US judge has ruled in favor of web3 company Yuga Labs, dismissing an investor lawsuit alleging that their NFTs fall under the Securities and Exchange Commission’s (SEC) definition of investment contracts. The judge determined that the plaintiffs failed to demonstrate how Bored Ape Yacht Club (BAYC), ApeCoin (APE) or other Yuga Labs-issued NFTs meet the three criteria outlined in the Howey test, a standard used by the SEC to assess if an investment contract exists.