David Suski, a New York citizen, who is the plaintiff in this case has filed a class action complaint against Coinbase (the principal defendant) alongside Marden-Kane which was the company that carried out the email outreach of DOGE sweepstake on the former’s behalf.
This suit faced the court with two issues for determination: First, whether or not Coinbase has violated the California false advertising law. Secondly, whether or not Coinbase violated the California unfair competition law.
According to the class action complaint, Coinbase allegedly displayed a $1.2 million Dogecoin sweepstakes. In crypto, sweepstakes are contests where the winners are picked randomly. It’s often about luck and not how skillful or knowledgeable the user was.
Their email subscribers received an email with which they can “trade, send, and receive Dogecoin on Coinbase.com and with the Coinbase Android and iOS apps”.
Furthermore, the email copy contained how those who entered into the sweepstake can win up to $300,000 in DOGE. Asides from that, important legal statements like the T & C had smaller fonts and not emboldened; what the plaintiff finds “manipulative”.
The plaintiff also argued that the email copy of the DOGE sweepstake was not clear as to the fact that there was a 100% free entry option. David Suski even claimed to have over 1,000 dogecoins on Robinhood already.
“The only reason that Plaintiff undertook to buy more Dogecoins from Coinbase was because the Company led him to believe that doing so was necessary to enter Coinbase’s $1.2 million Sweepstakes,” the action brief reads.
At the moment, the plaintiff is seeking $5 million damages from Coinbase.