Art gallery argues NFT holders can’t sue it due to ‘market decline’
Eden Gallery Group filed a motion to dismiss a class-action lawsuit from 36 NFT holders, arguing it is not liable for losses attributed to a general market decline in NFTs. The plaintiffs allege fraud and unjust enrichment regarding the "Meta Eagle Club" NFTs, claiming the project was a "rug pull." The collection sold 12,000 NFTs for $13 million between February 2022 and November 2023. The current floor price for these NFTs has dropped significantly from 0.6 ETH to 0.0051 ETH. Eden Gallery contends that the plaintiffs' losses stem from market forces rather than misrepresentation and that individual claims do not meet the $75,000 jurisdictional threshold. Despite a recent increase in NFT sales, the market remains down 98% from early 2022 highs in dollar sales volumes.
