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Market News Kim Kardashian, other celebrities beat EMax crypto investors’ lawsuit

Kim Kardashian, other celebrities beat EMax crypto investors’ lawsuit

According to a federal judge in California, it was unclear whether the investors who filed the complaint truly invested in the cryptocurrency promoted by reality TV star Kim Kardashian, boxing superstar Floyd Mayweather Jr., and others.

Cory Russell
2022-12-08
372

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An investor case against reality TV star Kim Kardashian, boxing superstar Floyd Mayweather Jr., and others was rejected by a federal judge in California on Wednesday because it was unclear if the investors saw the advertising or not.


According to the lawsuit, which was filed in January, officials of EthereumMax planned with celebrity promoters to entice investors to purchase the EMax token, raising its price and enabling them to sell their own tokens at a profit.


According to Los Angeles' U.S. District Judge Michael Fitzgerald, the investors may revise and resubmit their proposed class action.


The choice was made as consumers of the defunct cryptocurrency exchange FTX, whose collapse has intensified a current "crypto winter," are suing other celebrity advocates.


Investors in the EthereumMax case intend to alter their claims to include "a variety of fresh facts indicating defendants' malfeasance and responsibility," according to Sean Masson, an attorney who represents them.


Leading Kardashian attorney Michael Rhodes declared that the defense was "pleased with the court's well-reasoned verdict."


A request for comment from Mayweather's lawyers was not immediately reacted to. Paul Pierce, a former star in the National Basketball Association, was also mentioned in the complaint.


The investors claimed that Mayweather wore the company's logo on his boxing trunks during a highly watched fight, and that Kardashian endorsed EthereumMax in an Instagram post from June 2021.


Fitzgerald ruled on Wednesday that investors had failed to demonstrate that executives and promoters acted in their own self-interest rather than planning to deceive investors.

The judge wrote that the investors' claims of fraud were rejected because they had not specified whether or when they had seen the advertising.


Fitzgerald permanently rejected the investors' claims under California's consumer protection statute, arguing that it only applies to "concrete products" like tangible goods and services, not "intangible things" like cryptocurrencies, but the investors may reevaluate those claims.


In order to resolve allegations that she neglected to disclose that she was paid to promote EthereumMax tokens, Kardashian agreed to pay the SEC $1.26 million in October. She made no remorseful admissions.

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