A California judge has dismissed a lawsuit against Kim Kardashian, Floyd Mayweather Jr., and others over their role in promoting the cryptocurrency EthereumMax.
The lawsuit, which was originally filed in January, accused EthereumMax of conspiring with celebrities to promote the EMax token. The lawsuit alleged the promotions were meant to increase the token’s value and allow EthereumMax executives to sell their own holdings at a profit.
US District Judge Michael Fitzgerald said it wasn’t clear if those who sued were aware of the promotions as investors had failed to state where and when they had seen them, per court documents.
The judge told investors they could amend the proposed class action and refile it.
He said in the Wednesday ruling that the lawsuit raised “legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach,” according to court documents.
The lead attorney for Kardashian, Michael Rhodes, told Insider: “We are pleased with the Court’s well-reasoned ruling.”
A lawyer representing the investors, Sean Masson, told Reuters that they planned to revise their claims to add “a host of additional facts demonstrating defendants’ wrongdoing and liability.”
Kardashian has already agreed to pay the SEC $1.26 million to settle an investigation into Instagram posts that promoted the Ethereum Max token. She did not admit to any wrongdoing.
Ethereum max, or EMax, has been mired in controversy since its May 2021 launch. The token isn’t affiliated with the well-known ethereum cryptocurrency but is an altcoin that uses ethereum’s blockchain ledger to record sales and transactions.
Representatives for EthereumMax did not immediately respond to a request for comment from Insider.
Thank you very much!
Love this 🌸🌸🌸🌸
Cool ⭐️