Emax investors were given a third and final chance at the Celeb Promo Suit
EthereumMax (EMAX) investors in a class-action lawsuit have now been given one last chance to amend their claims against celebrities they say promoted the defunct cryptocurrency.
In an Oct. 3 court order, U.S. District Court Judge Michael Fitzgerald said he was giving Emax investors a third and final chance to file an amended complaint.
A class-action lawsuit filed by boxer Floyd Mayweather, NBA star Paul Pierce, reality TV star Kim Kardashian and others alleges the 2022 IMAX promotion, which the lawsuit calls “pump and dump.”
The judge in 2011 They dismissed the lawsuit in 2022 but revived it in June, refusing to dismiss the plaintiff's “unfair competition” claims against the celebrities. In the new order, four activities were carried out.
The court dismissed Mayweather's state consumer statute claims, finding that the plaintiffs had sufficiently pled and failed to state that Mayweather was a paid promoter.
It also denied Pierce's motion to dismiss the state consumer law claims and fraud claims, alleging that Pierce or an agent sold and traded the tokens for his own benefit.
The court dismissed similar consumer claims by Giovanni Peron, one of Emax's co-founders, but also rejected an amended warranty claim that Peron failed to show privately sold tokens.
The court said that the plaintiffs should resubmit their complaint, and the defendants should answer the remaining claims. Fitzgerald says:
“Plaintiffs have repeatedly failed to cure the deficiencies noted in court and have been expressly warned that this will be their last chance to remedy.”
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According to the white paper, EthereumMax – which is not related to Ethereum – is a “cultural token” that “bridges the gap between the emergence of community tokens and the well-known base coins of crypto.”
In October 2022, the US Securities and Exchange Commission sued Kim Kardashian for illegally promoting the token as a security. She agreed to pay a $1.26 million fine for her involvement.
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