A class action lawsuit against several celebrities, including Kim Kardashian and Floyd Mayweather, for promoting the cryptocurrency EthereumMax (EMAX) has been dismissed by a federal judge in California. The lawsuit was filed in January, with plaintiffs alleging that the celebrities had colluded with the crypto project’s co-founders to pump the tokens price.
However, Judge Michael Fitzgerald ruled that it was unclear if the plaintiffs had seen the specific promotions shared by the celebrities, and said that investors should be expected “to act reasonably before basing their bets on the zeitgeist of the moment.” The plaintiffs can refile with amended claims.
Kim Kardashian has posted several EthereumMax promotions to her 318 million-strong Instagram audience over the past two years. The plaintiffs’ lawyers argued that the high-profile celebrities had advertised the company and claimed that investors could make significant returns due to the favourable “tokenomics” of the EMAX Tokens.
In reality, the plaintiffs argued that the celebrities had marketed the tokens to investors so that they could sell their portion of the float for a profit.
Despite the dismissal of the lawsuit, Judge Fitzgerald said that the plaintiffs can refile with amended claims. The judge reportedly stated that it was unclear if the plaintiffs had seen the specific promotions shared by the celebrities, and said that investors should be expected “to act reasonably before basing their bets on the zeitgeist of the moment.”
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