Judge Fitzgerald rejected arguments from attorneys for Kim Kardashian and Paul Pierce to dismiss EMAX’s class action lawsuit.
A California judge has ruled that reality TV star and businesswoman Kim Kardashian posted false information on social media while promoting EthereumMax (EMAX). The ruling allows plaintiffs to continue the case against media personality, retired boxer Floyd Mayweather Jr., and NBA Hall of Famer Paul Pierce. It was Kardashian’s lawyers Go to rejection The lawsuit, claiming there is no evidence that investors bought EMAX tokens based on her Instagram posts.
Los Angeles County Judge Michael Fitzgerald denied attorneys’ petitions to dismiss the case because Kardashian’s online posts contained “literally false” information. Judge Fitzgerald also said that one such posting contained misinformation, indicating that EMAX tokens were scarce.
The judge also rejected similar arguments made by Peirce’s legal team. However, Mayweather saw some relief as the referee declared that the EMAX boxer’s promotion simply expressed his belief. The judge also said that Mayweather’s remarks were “a quintessential, unjusticiable murmur.”
The retired boxer was accused by investors of promoting EMAX tokens at a Bitcoin conference in 2021. Even though it was a Bitcoin event, Mayweather and his entourage arrived at the venue wearing EMAX T-shirts.
Kim Kardashian and Mayweather Emax bag
In January last year, investors lawsuit Kardashian, Pierce, and Mayweather for their participation in the EMAX promotions. According to the group’s excitement suit, celebrities have been promoting EMAX and influencing fans and followers to buy tokens.
Investors believe that Kim Kardashian and other celebrities worked with EMAX to artificially raise the price of the asset. It is alleged that they were able to do this by intentionally posting “false or misleading statements”.
Between June 2021 and January 2022, EMAX collapsed by about 97%. This angered the investors who filed the class action suit because they all thought it was a pump and dump scheme. The lawsuit also alleged that the trademark “EthereumMax” was intentionally misleading because the project has nothing to do with Ethereum.
At the time, an EthereumMax spokesperson refuted the pump and dump claim. in Email statement to RollingStoneThe spokesperson said the project is “one of the most transparent and communicative” in the crypto space. The person added that he was “looking forward to the truth coming out.”
December provisional ruling
Fitzgerald made preliminary judgments in favor of Kim Kardashian, Mayweather and E-Max in December. In the ruling, Fitzgerald acknowledged that the case raises concerns about celebrity influence over “millions of unprivileged followers to purchase snake oil with unprecedented ease and access.” However, he temporarily declined the proposal regardless. According to him, the facts presented by the plaintiff are insufficient. Furthermore, Fitzgerald said investors should take precautions before throwing money into a project regardless of advertiser misconduct. The final refusal of the motion to dismiss the case is considered a departure from the initial judgment.
In 2021, the UK’s Financial Conduct Authority (FCA) had Criticize Kardashian’s post. It was also fined by the US Securities and Exchange Commission (SEC) for not disclosing the post was a paid advertisement. Kim Kardashian allegedly settled the case by paying a $1.26 million fine.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.