In January 2022, celebrities like Kim Kardashian, Paul Pierce, and Floyd Mayweather faced lawsuits for promoting EthereumMax (EMAX). The same year, in October, Kim Kardashian was fined $1.26 million in this case. In November, the stars were finally acquitted. Despite everything, EthereumMax investors filed a second complaint against them, in December 2022. They believe that they are entirely guilty of having promoted EthereumMax, without proper disclosure. This time, the celebrities have a precedent that they intend to use to not let it go.
Kim Kardashian and company file motion to dismiss charges
Several celebrities, including Kim Kardashian and Floyd Mayweather, have filed a motion to avoid a second trial in the EMAX case. A California federal judge upheld the motion. This aims to convince the judge in charge of the case to dismiss the lawsuit for the promotion of EMAX. In particular, it indicates that the new charges relate to the same basic theory that the court had already rejected.
Celebrities say they don’t see how they should be held responsible for a case that a court has already tried. This, especially since the court pronounced their acquittal.
It should be noted that the investors have proceeded with a class action. Their complaint is based on the fact that the celebrities cooperated with the EthereumMax team to boost the sale of EMAX tokens. The class action says the cryptos were sold to investors, as part of a pump and dump scheme.
” The court also dismissed the entire earlier complaint due to fundamental flaws. Adding new claims, new defendants and over 100 pages of largely irrelevant allegations does not remedy these flaws. “, To explain the defendant in its motion. The celebrities added that investors “ have not suffered any harm from the mere fact of keeping the tokens “.
It must be said that the SEC of the United States has recently warned stars against promoting cryptos. The US regulator has indicated that it is imperative that they make appropriate disclosures when doing this type of promotion. The law requires celebrities to disclose, among other things, the amount they have received for promoting investments in securities. They must also publish the name of the company paying them for this service.
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