July 21, 2024
EMAX Investors Offered a Third and Final Opportunity in Celebrity Promo Lawsuit
Latest Cryptocurrency News

EMAX Investors Get Final Chance in Celebrity Promo Lawsuit

In an October 3rd court order, United States District Court Judge Michael Fitzgerald granted the plaintiffs in the EthereumMax (EMAX) investor class action lawsuit a final opportunity to amend their claims against the celebrities they accuse of promoting the now-defunct cryptocurrency.

The class-action lawsuit, initiated in 2022, targeted individuals such as boxer Floyd Mayweather, NBA star Paul Pierce, and reality TV star Kim Kardashian for their alleged promotion of EMAX, which the lawsuit described as a “pump and dump” scheme.

While the judge had previously dismissed the suit, it was revived in June, with the plaintiff’s “unfair competition” claims against the celebrities still standing. In his recent order, Judge Fitzgerald addressed four motions. The court rejected Mayweather’s motion to dismiss the state consumer law claims, citing sufficient allegations of materiality and Mayweather’s failure to disclose his paid promotion involvement.

Similarly, Pierce’s motion to dismiss the state consumer law claims and manipulation claim was denied, as it was deemed that there were adequate allegations that Pierce or his agent had engaged in the sale and trade of tokens for personal gain.

One of EMAX co-founders Giovanni Perone’s motions to dismiss the same consumer claims was also denied, except for the securities claims, which were granted dismissal due to the failure to assert that Perone personally sold tokens.

Judge Fitzgerald emphasized that the plaintiffs must re-file their complaint, and the defendants are required to respond to the remaining claims. He warned that this would be the final opportunity for the plaintiffs to amend their claims. EthereumMax, as stated in its whitepaper, presented itself as a “culture token” aiming to bridge the gap between community tokens and established crypto coins. In October 2022, Kim Kardashian faced charges from the U.S. Securities and Exchange Commission for unlawfully promoting the token as a security, resulting in her agreeing to pay $1.26 million in penalties for her involvement.

Image by Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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