Burwick Law filed a federal class action lawsuit against rapper Iggy Azalea this week. The suit alleges she misled buyers of her Mother Iggy (MOTHER) meme coin with promises of real-world utility that never fully materialized.

The complaint was filed in the Southern District of New York. It accuses Azalea of violating New York consumer protection laws after MOTHER lost roughly 99.5% of its peak value.

The suit, filed on Monday, brought by Burwick on behalf of MOTHER buyers, cites New York General Business Law sections 349 and 350.

Burwick Law has filed a federal class action against Iggy Azalea on behalf of MOTHER buyers.

The complaint alleges Azalea induced consumers to purchase MOTHER with promises of real-world utility that did not deliver as promised.

MOTHER is down 99.5% from ATH. pic.twitter.com/2RWaRCrwv1

Both statutes target deceptive acts and false advertising. Plaintiffs also add claims of negligent misrepresentation and unjust enrichment.

The filing argues Azalea framed MOTHER as the native currency of an ecosystem she controlled. That ecosystem allegedly included Motherland, an online casino, and Unreal Mobile, a telecommunications business co-founded by the rapper.

Tomorrow I’m finally relaunching the telecommunication company I co-founded and you will be able to purchase phones, or month to month cell plans using $MOTHER or Sol 🥳

Ad campaign n rollout to follow late this week. Exciting 🙊

Azalea told followers they would need MOTHER to enter Motherland. She also said Unreal Mobile customers could buy handsets and monthly plans with the token, claiming savings of up to $600 a year.

According to the filing, neither integration delivered durable, on-chain utility for holders. Plaintiffs argue buyers received no equity, no governance rights, and no revenue share in any of Azalea’s businesses.

“Holders of MOTHER received no equity in Azalea’s businesses. They received no revenue-sharing rights, no voting power, no contractual claims, and no legal interest in any underlying enterprise,” read an excerpt in the filing.

Azalea launched MOTHER on Solana on May 28, 2024. She positioned it as a meme coin with embedded utility, distinct from the typical celebrity launch.

Btw @sphere_labs are who we have utilized to incorporate the CT payment system launching tmrw with Unreal Mobiles relaunch 🥳

Within weeks, the token reached an all-time high near $0.23 and a peak market capitalization of about $194 million. Azalea also disclosed partnerships with market makers Wintermute Trading and DWF Labs to lend institutional credibility.

The token now trades around $0.001258, with a market capitalization of about $1.2 million, according to Coingecko data. That puts MOTHER more than 99% below its peak.

The token’s debut also drew controversy. On-chain analysts previously flagged $2 million in insider trading activity around the launch, claims Azalea denied at the time.

“Don’t disappoint your mother. Also don’t believe the bullsh*t, fake screenshots, and all the rest. I know you all are smarter than that. No one is working with me. I can’t say it enough. Not true. Sahil, baby, take your L and go already,” Azalea stated at the time.

Burwick has emerged as one of the most active plaintiff-side firms in crypto consumer protection. The firm has previously filed similar suits over the LIBRA token, the HAWK meme coin, and the Believe launchpad. It has also taken aim at Pump.fun.

The MOTHER case continues that pattern, focusing on consumer protection rather than securities registration.

By framing the action under deceptive practices statutes, Burwick avoids the harder question of whether meme coins qualify as securities.

Iggy Azalea has not publicly responded to the complaint.

The suit is in its earliest stages, and motions to dismiss are common in cases of this kind.

Notwithstanding, the filing puts another celebrity-backed meme coin on a growing list of class actions tied to alleged marketing failures.

The post Iggy Azalea Faces Class Action Lawsuit Over MOTHER Token appeared first on BeInCrypto.

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