MIAMI (Legal Newsline) - A marketplace for non-fungible tokens is accused of selling products with no value.
Heriberto Valiente filed a class action lawsuit May 13 in Miami federal court against StockX, Inc., which operates a secondary marketplace for luxury items like collectible sneakers, electronics and handbags, as well as NFTs, the suit says.
StockX assures buyers and sellers that the items sold on its platform are 100% authentic and receives fees from each sale, the suit says.
"However, credible reports indicate that a significant percentage of the items sold through StockX are not '100% Verified Authentic,' but counterfeit," the lawsuit says. "Defendant does not accept returns when customers identify counterfeit items."
The lawsuit was sparked by an article in Input Magazine that showed by StockX's so-called Vault NFTs, which are linked to corresponding sneakers, are of no value.
Those reasons include a redemption process that isn't currently available, corresponding products that do not exist and sham claims of partnership with major sneaker brands, the suit says.
"The value of the products that Plaintiff purchased or sold was materially less than its value as represented by Defendant because this price was inflated by the false expectation that all items sold through the platform were authentic and that the StockX Vault NFTs had value," the suit says.
West Palm Beach lawyer Will Wright has teamed with New York attorney Spencer Sheehan to file the suit.