Rapper Iggy Azalea faces class-action lawsuit over MOTHER meme coin

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BlockBeats News, May 6 — American rapper Iggy Azalea is facing a class-action lawsuit, accused of misleading investors regarding the real-world utility and future development of the meme coin Mother Iggy (MOTHER) on the Solana blockchain.

The lawsuit was filed this Monday by plaintiff Kenneth Kolbrak in the Manhattan Federal Court. The complaint states that Azalea publicly claimed the token had practical use in the real world, business integration, and ongoing development plans, but these promises were never truly fulfilled or were only temporary. Specific allegations include:

She promoted an online entertainment platform called “MOTHERLAND” that did not actually use the MOTHER token, but instead settled transactions with USDT.

She claimed to have business integrations for purchasing phones and plans, but these were not sustained or publicly demonstrated on the relevant platforms.

When introducing market maker-managed token trading, she did not disclose relevant terms or risks to holders. The plaintiff states they lost “several hundred dollars” investing in MOTHER.

The token was launched in May 2024, reaching a peak market cap of over $136 million, but is now only worth $1.3 million. The lawsuit seeks to recover damages for affected buyers. Azalea has not yet commented on this matter.

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