A federal judge in California has dismissed a lawsuit against reality TV sensation Kim Kardashian, boxing legend Floyd Mayweather, and others over their role in promoting EMAX.
The judge dismissed the lawsuit on the grounds that fraud allegations lacked merit and that investors also have the responsibility to conduct due diligence on their investment. He said the submissions failed to meet the “heightened pleading standards” for fraud claims.
The lawsuit filed in January claims EthereumMax executives schemed with celebrities to promote the EMax token, driving up its price and allowing them to sell their own tokens at a profit.
Celebrities including Kim Kardashian, Mayweather, and former NBA superstar Paul Pierce were allegedly involved in hyping the EMAX without disclosing they were being paid for promoting the token.
Kim Kardashian promoted EMAX in June 2021 via Instagram post while Floyd Mayweather was seen wearing the EMAX logo on his boxing trunks in a boxing match against Logan Paul.
The decision wasn’t surprising as US District Judge Michael Fitzgerald issued a tentative view in a class-action lawsuit last month, suggesting Kim Kardashian still stands a chance to win the case.
Though Fitzgerald dismissed the lawsuit, he acknowledged the power celebrities have been afforded by new technologies and social media in establishing potentially fraudulent promotional schemes. He also said that Celebrities now have the ability to “readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.
In addition, Fitzgerald suggested that the investors may amend and file their proposed class action. An attorney who represented the investors in the EMAX case, Sean Masson said that they plan to revise their claims to add “a host of additional facts demonstrating defendants’ wrongdoing and liability.”
On the other hand, Michael Rhodes, the lead attorney for Kardashian, said the defense is “pleased with the court’s well-reasoned ruling.”
