Iggy Azalea sued in New York over MOTHER token claims

Burwick Law filed a federal class action Monday in the Southern District of New York on behalf of buyers of the Mother Iggy token, MOTHER, alleging rapper Iggy Azalea misled consumers about the token’s promised uses.

The complaint cites New York General Business Law sections 349 and 350, which prohibit deceptive acts and false advertising, and adds claims of negligent misrepresentation and unjust enrichment. Plaintiffs say Azalea marketed MOTHER as the native currency of an ecosystem she controlled that would include Motherland, an online casino, and Unreal Mobile, a telecommunications business she co‑founded.

The filing points to social media posts in which Azalea promoted MOTHER’s uses. In a June 9, 2024 tweet she wrote, “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 🥳.” The complaint says buyers were told they would need MOTHER to enter Motherland and that Unreal Mobile customers could buy handsets and monthly plans with the token, with claimed savings of up to $600 a year.

The suit argues token holders received no ownership or economic rights in Azalea’s businesses. The complaint states, “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.”

MOTHER launched on the Solana blockchain on May 28, 2024. Within weeks it hit an all‑time high near $0.23, with a peak market capitalization of roughly $194 million. The token now trades around $0.001258 and has a market capitalization near $1.2 million, a decline of more than 99% from its peak, according to market data cited in the filing.

The complaint also notes announced partnerships with market makers Wintermute Trading and DWF Labs. On‑chain analysts flagged roughly $2 million in alleged insider trading around the token’s launch; Azalea denied those allegations on social media at the time.

Burwick Law has brought other crypto consumer actions and framed this case under New York consumer protection statutes rather than alleging MOTHER was an unregistered security, the filing says.

The lawsuit is in its early stages. Motions to dismiss are common in cases like this, and the complaint will likely face testing on pleadings and jurisdictional grounds. The filing says Azalea has not publicly responded to the complaint filed in New York.