- A class-action lawsuit against Kim Kardashian was dismissed by a federal judge.
- Michael Fitzgerald concluded that investors failed to prove the $EMAX promotion.
On Wednesday, a federal judge in California dismissed a lawsuit filed by investors against the founder of the cryptocurrency EthereumMax ($EMAX) along with reality TV star Kim Kardashian and boxing icon Floyd Mayweather, for their involvement in promoting cryptocurrency.
In June 2021, Kim Kardashian amazed many by posting an Instagram post about cryptocurrencies, which promoted $EMAX to her 250 million followers. A well-known Instagram celebrity supported EthereumMax tokens with a caution that noted, “This is not financial advice.” Also, Kim Kardashian’s tweet contained the hashtag “#AD.”
$EMAX Investors Failed to Prove the Allegations
Investors who acquired $EMAX tokens claimed they lost money after believing celebrity influencers about the worth of the cryptocurrency. The suit alleges that the defendants intended to fraudulently inflate the value of the $EMAX tokens.
Additionally, the plaintiffs claimed in the initial court petition, which Scott+Scott Attorneys At Law filed on January 7, that Mayweather, Kardashian, and former NBA star Paul Pierce had failed to disclose that they had been paid to promote EthereumMax.
However, Michael Fitzgerald concluded on December 8, 2022, that investors had missed to prove that CEO and promoters acted in their self-interest rather than planning to mislead investors. And the magistrate’s statement claimed that a class-action lawsuit was dismissed because ‘it is unclear whether the investors who sued noticed the promotion’ and they had not specified when they had seen the promotions.
Moreover, on October 3, Kardashian agreed to pay a $1.26 million settlement over allegations with U.S. Securities Exchange Commission (SEC), that she failed to disclose her $250,000 paid promotion by the EthereumMax.