NFTs

YouTube Stars Nelk Boys Push Back Against NFT Lawsuit

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.”

Founded by Forgeard and Jesse Sebastiani in 2010, the Nelk Boys are a group of Canadian-American entertainers known for their prank videos and a party-themed brand that includes the Full Send podcast, merchandise, and alcoholic beverages. The Nelk Boys boast 8 million subscribers on YouTube and 674,000 followers on X.
The Nelk Boys launched the Metacard NFT project in January 2022. The collection of 10,000 Ethereum NFTs, each sold for approximately 0.8 ETH, around $2,300 at the time, and raised roughly $23 million. As of the time of writing, the collection is down 91% to a floor price of $111, according to CoinGecko data.
The defense said that the complaint failed to identify any specific pre-sale misrepresentations, false statements, or evidence that the plaintiff relied on when purchasing the Metacard NFT, and contended that the alleged promises largely matched the perks the plaintiff acknowledged receiving.
“Plaintiff’s claims rise and fall on what was said before he bought his Metacard. But the complaint never identifies a pre-sale statement. That is dispositive,” the defense said. “Everything else—from post-sale comments to generalities and regret—is legally irrelevant.” Attorneys for the plaintiffs and defendants did not respond to Decrypt’s request for comment.
Terron Gold

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