The EthereumMax (EMAX) investor class action lawsuit continues
The plaintiffs in the EthereumMax (EMAX) investor class action lawsuit have been given a final opportunity to amend their claims against the celebrities they accuse of promoting the now-defunct cryptocurrency. United States District Court Judge Michael Fitzgerald has granted the EMAX investors a third and final chance to submit an amended complaint.
The background of the lawsuit
In 2022, a class-action suit was filed against boxer Floyd Mayweather, NBA star Paul Pierce, reality TV star Kim Kardashian, and others for allegedly promoting EMAX, which was described as a “pump and dump” scheme. The suit was initially dismissed by the judge but revived in June, with unfair competition claims still standing against the celebrities.
The court’s decisions
In the recent order, four motions were addressed. The court denied Mayweather’s motion to dismiss state consumer law claims, stating that the plaintiffs adequately alleged materiality and Mayweather’s failure to disclose his paid promotion. Pierce’s motion to dismiss state consumer law claims and manipulation claim was also denied, as it was sufficiently alleged that Pierce or his agent benefited from selling and trading tokens. One of EMAX cofounder Giovanni Perone’s motions to dismiss consumer claims was denied, but the court granted dismissal of securities claims since there was no allegation that Perone personally sold tokens.
Final chance to amend
Judge Fitzgerald emphasized that this would be the last opportunity for the plaintiffs to amend their complaint. They must re-file their complaint, and the defendants must respond to the remaining claims.
About EthereumMax
EthereumMax is not related to Ethereum. According to its whitepaper, it aimed to be a “culture token” bridging community tokens with established cryptocurrencies. However, in October 2022, Kim Kardashian was charged by the U.S. Securities and Exchange Commission for unlawfully promoting EMAX as a security and agreed to pay $1.26 million in penalties.
Hot Take: Celebrities face final chance to amend claims in EMAX lawsuit
The plaintiffs in the EthereumMax (EMAX) investor class action lawsuit have been given a final opportunity to amend their claims against the celebrities accused of promoting the cryptocurrency. The court has denied several dismissal motions filed by Floyd Mayweather, Paul Pierce, and Giovanni Perone. This development signifies that the case will proceed further, with the plaintiffs required to re-file their complaint and the defendants responding to the remaining claims. The lawsuit highlights the ongoing scrutiny faced by celebrities for their involvement in cryptocurrency promotions. It also serves as a reminder of the importance of transparency and compliance in crypto advertising.
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