A California judge has dismissed a lawsuit against reality TV star Kim Kardashian, boxing legend Floyd Mayweather Jr and others over their roles in promoting cryptocurrency, saying it’s unclear whether or not the sued investors actually viewed the promotions.
he filed a lawsuit in January, claiming that EthereumMax executives made a scheme with well-known promoters to entice investors to buy the EMax token, push its price up, and let allowing them to sell their own tokens for profit.
U.S. District Judge Michael Fitzgerald in Los Angeles said investors could amend and finalize their proposed class action.
The decision comes as other celebrity promoters face lawsuits from users of failed crypto exchange FTX, the demise of which has deepened a “season”. crypto easter” is going on.
Sean Masson, the attorney representing investors in the EthereumMax case, said it plans to amend its requirements to add “a series of additional facts that demonstrate misconduct and liability.” of the defendants”.
Michael Rhodes, Kardashian’s lead attorney, said the defense was “satisfied with the court’s reasonable decision”.
Mayweather’s attorney did not immediately respond to a request for comment. Also named in the lawsuit is former National Basketball Association star Paul Pierce.
Investors said Kardashian promoted EthereumMax in a June 2021 Instagram post, and Mayweather wore the company’s logo on his boxing pants during a highly watched match.
In today’s ruling, Judge Fitzgerald said the investors had failed to demonstrate that the executives and promoters planned to mislead investors, rather than act in their own self-interest. their.
The investors’ fraudulent claims failed because they did not state whether they saw the promotions or not, the judge wrote.
While the investors could amend those claims, the judge permanently dismissed their claims under California’s consumer protection law, which he said applies to goods and services. tangible, not “intangible goods” like cryptocurrencies.
In October, Kardashian agreed to pay the Securities and Exchange Commission $1.26 million to settle a complaint that she failed to disclose that she was paid to promote the EthereumMax token. . She did not admit wrongdoing.
https://www.independent.ie/world-news/north-america/judge-dismisses-lawsuit-against-kim-kardashian-over-cryptocurrency-promotion-42203945.html Judge dismisses lawsuit against Kim Kardashian over cryptocurrency advertising