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A US federal judge has tossed a high-profile investor suit that accused Yuga Labs of selling unregistered securities through Bored Ape Yacht Club (BAYC) NFTs and ApeCoin.
The decision, handed down by Judge Fernando M. Olguin, found that the plaintiffs did not meet the legal test for an investment contract.
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According to reports, the suit dated back to 2022 and was aimed at forcing a legal finding that the tokens were securities; the court disagreed and dismissed the case.
Judge Found Howey Test Unmet
Judge Olguin ruled the plaintiffs failed to show all three prongs of the Howey Test were satisfied. Based on reports, the court said buyers were not shown
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