Defense attorneys for YouTubers Kyle Forgeard and John Shahidi, also known as the Nelk Boys, have moved to dismiss a class action lawsuit accusing them of fraud over their Full Send Metacard NFT project. Attorneys for the Nelk Boys argued that the plaintiff turned down a full refund and that the complaint lacks specific false claims.
The lawsuit was filed in January on behalf of Metacard NFT buyers, alleging that the defendants had misled consumers with promises of exclusive perks and community access. It is also alleged that the pair misrepresented the Metacard program before the January 19, 2022, sale, which induced the plaintiff to purchase a token on that date.
The lawsuit asserted that after the NFTs were sold, the defendants continued to make misleading statements to delay the plaintiff and other potential class members from realizing they had been misled. “The defendants’ false and misleading statements were widely distributed through press releases, social media posts, YouTube videos, podcasts, and other promotional materials related to Full Send and Metacards,” the complaint stated. In a motion filed on April 17 in the U.S. District Court for the Central District of California, the defense for the Nelk Boys argued that the complaint fails to meet basic fraud standards and is moot due to the refund offer.
“After the broader NFT market collapsed, defendants offered every Metacard holder—including the plaintiff—a full refund plus interest, mooting these claims,” the attorneys wrote. “Plaintiff may regret his purchase—and turning down a full refund. But regret does not plead fraud. The complaint should be dismissed.”
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