Judge Fitzgerald rejected Kim Kardashian’s and Paul Pierce’s lawyers’ arguments to dismiss the EMAX class action lawsuit.

A California judge has ruled that reality TV star and businessman Kim Kardashian posted false information on social media while promoting Ethereum Max (EMAX). The ruling allowed plaintiffs to pursue their lawsuits against media personalities, former boxer Floyd Mayweather Jr. and NBA Hall of Famer Paul Pierce. Kardashian’s lawyers have moved to dismiss the lawsuit, arguing there is no evidence that investors bought EMAX tokens based on her Instagram posts.

Los Angeles District Judge Michael Fitzgerald dismissed an attorney’s motion to dismiss the lawsuit, saying Kardashian’s online post contained “literally false” information. Judge Fitzgerald also said such posts contained misleading information suggesting a shortage of EMAX tokens.

The judge also dismissed a similar allegation made by Mr. Pierce’s legal team. However, Mayweather saw some respite as the ruling declared the boxer’s promotion to EMAX was merely an expression of his beliefs. The judge also said Mayweather’s remarks were “typical inaction hyperbole.”

Investors have accused the retired boxer of promoting the EMAX token at the 2021 Bitcoin conference. Mayweather and his entourage arrived wearing EMAX t-shirts, even though it was a Bitcoin event.

Kim Kardashian and Mayweather EMAX affair

Last January, investors filed a lawsuit against Kardashian, Pierce and Mayweather, alleging they were involved in promoting EMAX. According to the class action lawsuit, the named celebrities promoted EMAX and influenced fans and followers to buy the tokens.

Investors believe Kim Kardashian and other celebrities worked with EMAX to artificially inflate asset prices. They were allegedly able to do this by intentionally posting “false or misleading statements.”

From June 2021 to January 2022, EMAX crashed about 97%. All the investors who filed the class action lawsuit were upset because they believed it was a pump and dump scheme. The lawsuit also argued that the “EthereumMax” branding was intentionally misleading, as the project has nothing to do with Ethereum.

At the time, an Ethereum Max spokesperson refuted Pump and Dump’s claims.and Email your statement to Rolling StoneA spokesperson for said the project is “one of the most transparent and easily communicated projects” in the crypto space. “We look forward to the truth coming out,” the source added.

Interim Judgment in December

Fitzgerald issued an interim ruling in December in favor of Kim Kardashian, Mayweather and EMAX. Fitzgerald said in his ruling that the lawsuit sheds light on concerns that celebrities are influencing “millions of unwitting followers to purchase snake oil with unprecedented ease and reach.” Admitted to being exposed to the sun. However, he nevertheless provisionally dismissed his motion. He said the plaintiff’s facts were insufficient. Additionally, Fitzgerald said investors should take necessary precautions before committing money to a project, regardless of advertiser misconduct. The recent dismissal of the motion to dismiss the case is a reversal of the preliminary judgment.

In 2021, the UK’s Financial Conduct Authority (FCA) criticized Kardashian’s posts. She was also fined by the U.S. Securities and Exchange Commission (SEC) for failing to disclose that her posts were paid advertisements. Kim Kardashian paid her $1.26 million fine, which she allegedly settled.

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Tol Ajiboe

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to explain the cryptocurrency story down to the basics so that anyone, anywhere can understand it without a lot of background knowledge. When not digging into cryptocurrencies, Tolu enjoys music, loves to sing, and is an avid movie buff.

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