A federal judge in California threw out a class action lawsuit that named Kim Kardashian, Floyd Mayweather, and the people who started EthereumMax. The judge said that the lawsuit didn’t meet the “heightened pleading requirements” for fraud claims, so the lawsuit was thrown out.
The judge said that if any of the terms change, the plaintiffs can resubmit the claim.
In their first court filing on January 7, the plaintiffs said that Paul Pierce, Floyd Mayweather, and Kim Kardashian didn’t say that they were paid to promote EthereumMax.
Plaintiffs said that the defendants “artificially raised the price of the token” by making “false or misleading promises.”
Mayweather wore the EMAX logo on his boxing trunks when he fought YouTuber Logan Paul in the same month, but Kardashian posted on Instagram in June 2021 that she supported the business.
Judge Michael Fitzgerald is said to have thrown out the complaint on December 7, saying that the fraud claims were false and that it was the investors’ responsibility to do their research before investing.
But the law puts limits on these marketers and tells investors to be careful before putting money on bets based only on current events.
Judge Fitzgerald did say that one reason he decided to throw out the case was that celebrities’ use of social media and new technology to make ads that could be misleading was a factor.
Fitzgerald is said to have written in his termination letter, “This move shows that almost anyone with tech skills and/or connections can start a new currency and build their own digital market overnight.”
He then said that celebrities could “easily convince millions of gullible followers to buy snake oil with an ease and reach that is unmatched.”
Even if the investors are let go, they may still lose money. Fitzgerald allegedly said, using a part of the Racketeer Influenced and Corrupt Organizations Act, that he would let the plaintiffs re-file their claim if their lawyer changed a few words from the first filing.
Kardashian has been criticized in the past for promoting EthereumMax on social media.
Kim Kardashian and the U.S. Securities and Exchange Commission reached a settlement on October 3 for $1.26 million. The settlement came after she was accused of not telling the SEC that she earned $250,000 to promote EthereumMax.
Mayweather’s lawyers say that the complaint doesn’t list a single thing that Mayweather said about eMax coins or EthereumMax. Mayweather has said many times that he won’t be a part of the EthereumMax.
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