EMAX Investors Get Final Chance to Amend Claims Against Celebrities
Summary:
The EthereumMax (EMAX) class action lawsuit investors have received their final opportunity to revise their claims against several celebrities, including Floyd Mayweather and Kim Kardashian, accused of promoting the defunct cryptocurrency. The accusation, labeled as a "pump and dump" scheme, was reinstated by Judge Michael Fitzgerald in June after initially dismissing it. Recent court decisions have denied both Mayweather's and NBA star Paul Pierce's motions to dismiss the state consumer law claims. Meanwhile, EMAX co-founder Giovanni Perone's motion to dismiss was partly approved. The court has instructed plaintiffs to resubmit the complaint, and defendants to respond to the remaining allegations.
The participants in the EthereumMax (EMAX) class action lawsuit have received their final opportunity to revise their accusations against the public figures alleged to have promoted the now obsolete cryptocurrency. District Judge Michael Fitzgerald of the United States District Court issued an order on October 3 granting the EMAX investors their third and last chance to submit a revised lawsuit. The class action complaint was lodged against prominent figures such as boxer Floyd Mayweather, NBA sensation Paul Pierce, and reality television celebrity Kim Kardashian, among others, in 2022 on the grounds that they touted EMAX, a cryptocurrency purported to be part of a "pump and dump" scheme. The judge had once dismissed the case, but reinstated it in June, declining to dismiss the claimants' accusations of "unfair competition" against the celebrities. The latest order included four motions, a section of which elaborates on the motions up for consideration in court. The court rebutted Mayweather's attempt to dismiss allegations based on state consumer law, acknowledging that the plaintiffs had satisfactorily argued materiality and Mayweather's failure to disclose his role as a paid promoter. Similarly, Pierce's attempt to dismiss allegations based on state consumer law and manipulation claim were denied, judging that it was adequately suggested that Pierce or his representative bought and sold tokens for his gain. One of the motions by EMAX co-founder Giovanni Perone to dismiss same consumer allegations was rejected, however, approval was given to revise the dismissal of the securities allegations due to the lack of evidence indicating Perone personally sold tokens. The court directed that the plaintiffs need to resubmit the complaint and the respondents have to respond to the remaining allegations. The EthereumMax cryptocurrency, divorced from the original Ethereum, proclaimed itself as a "culture token" connecting traditional cryptocurrency systems and emerging community tokens. Kim Kardashian was indicted in October 2022 by the United States Securities and Exchange Commission for her unlawful promotion of the token as a security, prompting her to agree to payment of penalties in the region of $1.26 million.
Published At
10/6/2023 4:35:09 AM
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