Judge Fitzgerald reject arguments from Kim Kardashian and Paul Pierce’s lawyers to dismiss the EMAX 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 the plaintiffs to proceed with the case against the media personality, retired boxer Floyd Mayweather Jr., and NBA Hall of Famer Paul Pierce. Kardashian’s attorneys had moved to dismiss the suit, claiming there was no evidence investors bought EMAX tokens based on her posts on Instagram.

Los Angeles District Judge Michael Fitzgerald rejected attorneys’ pleas to dismiss the case because Kardashian’s posts online contained “literally false” information. Judge Fitzgerald also said one such post contained misleading information, which suggested that EMAX tokens were scarce.

The judge also rejected similar arguments brought by Pierce’s legal team. However, Mayweather saw some respite as the ruling declared the boxer’s EMAX promotion simply expressed his belief. The judge also said Mayweather’s statements were “quintessential nonactionable puffery.” 

Investors had accused the retired boxer of promoting the EMAX tokens at a Bitcoin conference in 2021. Although it was a Bitcoin event, Mayweather and his entourage arrived at the venue donning EMAX t-shirts.

The Kim Kardashian and Mayweather EMAX Case

In January last year, investors sued Kardashian, Pierce, and Mayweather for their involvement in EMAX promotions. According to the class-action suit, the named celebrities promoted EMAX and influenced fans and followers to buy the tokens.

The investors believe Kim Kardashian and other celebrities worked with EMAX to artificially spike the asset’s price. They were allegedly able to do this by deliberately posting “false or misleading statements.” 

Between June 2021 and January 2022, EMAX crashed by about 97%. This irked investors who brought the class-action suit as they all believed it was a pump-and-dump scheme. The suit also claimed that the branding as “EthereumMax” was deliberately misleading because the project has no connection with Ethereum.

At the time, an EthereumMax spokesperson refuted the pump-and-dump claim. In an email statement to RollingStone, the spokesperson said the project is “one of the most transparent and communicative” in the crypto space. The person added that they “look forward to the truth coming out.”

December’s Tentative Ruling

Fitzgerald had issued a tentative ruling in favor of Kim Kardashian, Mayweather, and EMAX in December. In the ruling, Fitzgerald admitted that the case brings concerns to light about celebrities influencing “millions of undiscerning followers to buy snake oil with unprecedented ease and reach.” However, he tentatively dismissed the motion regardless. According to him, the plaintiff’s submitted facts were inadequate. Furthermore, Fitzgerald said investors must take necessary precautions before dumping funds into a project regardless of an advertiser’s misconduct. The recent rejection of the motion to dismiss the case is a turnaround from the tentative ruling. 

In 2021, the UK’s Financial Conduct Authority (FCA) had criticized Kardashian’s post. She was also fined by the US Securities and Exchange Commission (SEC) for failing to reveal the post was a paid advert. Kim Kardashian allegedly settled the case by paying a $1.26 million fine.

Altcoin News, Cryptocurrency news, News

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

Tolu Ajiboye

Source link

You May Also Like

XRP Rockets Up 8% As Shark & Whale Bags Hit 3-Month High

XRP has observed a sharp surge of 8% during the past day…

Celsius creditors vote in favor of reorganization plan

The creditors involved in the Celsius bankruptcy case have voted in favor…

Korean IT firm, NHN, to develop games on Sui network

NHN Corporation, a South Korean IT firm, has partnered with Mysten Labs,…

Massachusetts Resident Allegedly Set up a Secret Crypto Miner Under a School (Report)

Nadeam Nahas – a 39-year-old former US state of Massachusetts employee –…