EMAX investors have been given a final opportunity to amend their claims against celebrities accused of promoting the now-defunct cryptocurrency EthereumMax (EMAX), according to a recent court order issued by United States District Court Judge Michael Fitzgerald on October 3rd.
The class-action lawsuit was initially filed against prominent figures such as boxer Floyd Mayweather, NBA star Paul Pierce, and reality TV star Kim Kardashian in 2022, alleging their involvement in promoting EMAX, which was described as a “pump and dump” scheme in the suit. While the lawsuit was initially dismissed by the judge last year, it was revived in June, with “unfair competition” claims against the celebrities remaining intact. The recent order addressed four specific motions in the case.
In this order, the court rejected Floyd Mayweather’s attempt to dismiss claims related to state consumer protection laws. The judge ruled that the plaintiffs had sufficiently alleged that Mayweather had failed to disclose that he was a paid promoter and that this omission was material to the case.
Similarly, Paul Pierce’s motion to dismiss claims related to state consumer protection laws and manipulation was denied by the court. It was deemed that there was sufficient evidence to suggest that Pierce or his representative had sold and traded EMAX tokens for personal gain.
One of EMAX’s co-founders, Giovanni Perone, had one of his motions to dismiss consumer claims denied, but the court granted a dismissal of the securities claims due to a lack of evidence showing that Perone personally sold tokens.
Judge Fitzgerald emphasized that the plaintiffs must refile their complaint, and the defendants must respond to the remaining claims. He warned that this would be the final opportunity for the plaintiffs to address the court’s identified deficiencies.
It’s worth noting that EthereumMax (EMAX) was a cryptocurrency unrelated to Ethereum, despite the similarity in the name. The token claimed to be a “culture token” bridging the gap between community tokens and well-established cryptocurrencies.
In October 2022, Kim Kardashian was charged by the U.S. Securities and Exchange Commission for unlawfully promoting EMAX as a security. As part of a settlement, she agreed to pay $1.26 million in penalties for her involvement.
