Jimmy Fallon is one of the celebrities being sued over his alleged involvement in hawking Bored Ape Yacht Club NFTs without disclosing his own financial stake, and the crypto catastrophe isn't over yet.
RadarOnline.com has learned the legal drama involving Fallon and other stars captured the attention of his network following claims that A-listers peddled the non-fungible tokens without sharing their investment in the company behind them, Yuga Labs.
The suit filed in California federal court alleged the promotion convinced investors to buy BAYC NFTs.
"Jimmy's involvement in this case is getting looked at under a microscope by management at NBC Universal," an insider said.
A rep for Yuga Labs also spoke out about the matter in a statement. "In our view, these claims are opportunistic and parasitic. We strongly believe that they are without merit, and look forward to proving as much," the spokesperson told the Hollywood Reporter.
RadarOnline.com has reached out to a rep for Fallon for comment.
The proposed class-action lawsuit accuses the celebs of committing fraud "by convincing potential retail investors that the price of these digital assets would appreciate."
Instead, the value of some of those investments plummeted in recent months.
Madonna, Paris Hilton, Justin Bieber, Kevin Hart, Stephen Curry, Serena Williams, and more were also listed as defendants in addition to Fallon's production company, Election Hot Dog.
The suit stated that talent manager Guy Oseary recruited famous people in exchange for payment through a crypto firm, MoonPay.
Fallon mentioned the NFTs on The Tonight Show in November 2021, telling viewers he got his first Bored Ape Yacht Club NFT through MoonPay.
The TV host never mentioned he had a stake in Moonpay, the filing noted, claiming Fallon and NBC never disclosed this "purportedly organic segment on The Tonight Show was in reality a paid advertisement for the BAYC collection of NFTs and MoonPay."
As the legal drama continues, an insider said "this is the last thing Jimmy needs," adding, "It's not as simple as writing a check to make it go away."