StockX Collectible Luxury Items and Sneaker NFTs Class Action

The complaint for this class action describes StockX, Inc. as “operat[ing] an online secondary marketplace” offering luxury, collectible items as well as non-fungible tokens (NFTs) that correspond to physical goods. However, the complaint alleges that the collectible goods may be inauthentic and that the NFTs may be illusory.

Two classes have been defined for this action:

• The Florida Class is all persons in Florida who bought or sold products on StockX’s platform during the applicable statutes of limitations.
• The Consumer Fraud Multi-State Class is all persons in Alabama, Michigan, Texas, New Mexico, and Louisiana who bought or sold products on StockX’s platform during the applicable statutes of limitations for each cause of action alleged.

Among the collectible luxury items sold by StockX, the complaint claims, are sneakers, electronics, and handbags.

According to the complaint, StockX “touts its comprehensive database of fraudulent practices, proprietary methods based on hundreds of datapoints, advanced technology and expert guidance[] as reasons why it is 99.95% accurate in authenticating all items sold through its platform.”

However, the complaint alleges that “a significant percentage” of these items are in fact counterfeit, and that StockX will not allow customers to return these items.

The company also sells StockX Vault NFTs, which are purportedly linked to physical pairs of collectible sneakers at its facilities. However, the complaint refers to an article in Input Magazine to allege that these NFTs are illusory, for a number of reasons:

• The complaint alleges that buyers are told they can redeem the NFTs at any time, but that the “redemption process is not currently available.”
• According to the complaint, many of the physical products corresponding to the NFTs simply do not exist.
• The complaint claims the NFTs are sold at several times the value of the actual items.
• Oddly, the complaint alleges that StockX ‘retains the right to ‘redeem’ their NFTs for an undefined ‘Experiential Component,’ consisting of vaguely defined ‘experiences’ in place of tangible goods.”
• Finally, the complaint claims that buyers falsely believe that StockX has some kind of partnership with sneaker brands like Nike and Adidas pertaining to their sneakers. As support for this, the complaint refers to online social media conversations about the goods and the supposed links between the sneaker NFTs and the sneaker companies.

The complaint alleges that StockX “sold more of the Products and at higher prices than it would have in the absence of this misconduct, resulting in additional profits at the expense of consumers” and that the products’ value was materially less than StockX represented.

Article Type: Lawsuit
Topic: Consumer
Tags: Breach of warranty, Deceptive Advertising, Fraud, NFTs, Negligent Misrepresentation