Iggy Azalea Faces Class Action Lawsuit Over MOTHER Token
Burwick Law filed a federal class motion lawsuit in opposition to rapper Iggy Azalea this week. The go well with alleges she misled patrons of her Mother Iggy (MOTHER) meme coin with guarantees of real-world utility that by no means totally materialized.
The criticism was filed within the Southern District of New York. It accuses Azalea of violating New York client safety legal guidelines after MOTHER misplaced roughly 99.5% of its peak worth.
Inside the Iggy Azalea MOTHER lawsuit
The go well with, filed on Monday, introduced by Burwick on behalf of MOTHER buyers, cites New York General Business Law sections 349 and 350.
Both statutes goal misleading acts and false promoting. Plaintiffs additionally add claims of negligent misrepresentation and unjust enrichment.
The submitting argues Azalea framed MOTHER as the native currency of an ecosystem she managed. That ecosystem allegedly included Motherland, a web based on line casino, and Unreal Mobile, a telecommunications enterprise co-founded by the rapper.
Azalea informed followers they would want MOTHER to enter Motherland. She additionally stated Unreal Mobile prospects may purchase handsets and month-to-month plans with the token, claiming financial savings of as much as $600 a 12 months.
According to the submitting, neither integration delivered sturdy, on-chain utility for holders. Plaintiffs argue patrons obtained no fairness, no governance rights, and no income share in any of Azalea’s companies.
“Holders of MOTHER obtained no fairness in Azalea’s companies. They obtained no revenue-sharing rights, no voting energy, no contractual claims, and no authorized curiosity in any underlying enterprise,” read an excerpt within the submitting.
How MOTHER Collapsed From a $200 Million Peak
Azalea launched MOTHER on Solana on May 28, 2024. She positioned it as a meme coin with embedded utility, distinct from the standard celeb launch.
Within weeks, the token reached an all-time high close to $0.23 and a peak market capitalization of about $194 million. Azalea additionally disclosed partnerships with market makers Wintermute Trading and DWF Labs to lend institutional credibility.
The token now trades round $0.001258, with a market capitalization of about $1.2 million, based on Coingecko knowledge. That places MOTHER greater than 99% beneath its peak.
The token’s debut additionally drew controversy. On-chain analysts beforehand flagged $2 million in insider trading activity across the launch, claims Azalea denied on the time.
“Don’t disappoint your mom. Also don’t consider the bullsh*t, faux screenshots, and all the remaining. I do know you all are smarter than that. No one is working with me. I can’t say it sufficient. Not true. Sahil, child, take your L and go already,” Azalea stated on the time.
Burwick Law’s Expanding Crypto Litigation Playbook
Burwick has emerged as some of the energetic plaintiff-side companies in crypto client safety. The agency has beforehand filed comparable suits over the LIBRA token, the HAWK meme coin, and the Believe launchpad. It has additionally taken aim at Pump.fun.
The MOTHER case continues that sample, specializing in client safety reasonably than securities registration.
By framing the motion underneath misleading practices statutes, Burwick avoids the more durable query of whether or not meme cash qualify as securities.
Iggy Azalea has not publicly responded to the criticism.
The go well with is in its earliest levels, and motions to dismiss are frequent in instances of this type.
Notwithstanding, the submitting places one other celebrity-backed meme coin on a growing list of class actions tied to alleged advertising and marketing failures.
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