In early 2022, Kim Kardashian and Floyd Mayweather were prosecuted for illegally promoting the crypto EthreumMax (EMAX). The reality TV star was accused of promoting the token to its 250 million subscribers, without indicating how much it received, as required by law. As for Mayweather, he had crypto logos displayed on his team’s boxing shirts. Basketball player Paul Pierce is also in the list of celebrities who have promoted crypto. Unfortunately, for investors, EthereumMax (EMAX) was subject to a major pump and dump, after these advertisements. This prompted them to file a complaint.
A rejection of course, but it’s not over
In the United States, a Los Angeles district judge has rejected a proposed class action lawsuit against crypto founders and promoters including Kim Kardashian and boxer Floyd Mayweather Jr. The lawsuit was brought by plaintiff Ryan Huegrich. He filed the lawsuit on behalf of all investors who purchased EthereumMax (EMAX) between May 14 and June 17, 2021. Judge Michael Fitzgerald ruled that customers should have been better informed. Moreover, he said he was worried about the ability of celebrities to easily persuade millions of unsuspecting people.
“The law certainly imposes limits on these advertisers, but it also expects investors to act reasonably. The allegations are not strong enough given the higher pleading standards in fraud complaints”. This is what the magistrate wrote in the judgment of the Los Angeles court.
However, this refusal does not put an end to the EthereumMax (ETH) case. According to information from The Block, the accusing party is authorized to lodge a new complaint. This, on the condition of modifying some of its claims.
This update in the case comes after Kim Kardashian was fined $1.26 million. The fine was imposed on her by the SEC, which she paid to avoid prosecution by the federal agency. In early November, the three celebrities were also provisionally acquitted in a ruling by Judge Michael Fitzgerald.
Michael RhodesKim Kardashian’s lawyer, welcomed the news. “We are satisfied with the reasoned decision of the court in this case”he said.
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