A class action suit that was filed against Kim Kardashian and Floyd Mayweather Jr. for promoting the ethereummax cryptocurrency token has been dismissed. The Judge mentioned that the law in place expects investors to use sensible judgement before investing.
Crypto Lawsuit Against Kim Kardashian Rejected
A US District Court Judge Michael Fitzgerald ruled on Wednesday to reject a class action lawsuit against the founders of Ethereummax and the celebrity promoters of the crypto project, including Kim Kardashian, boxer Floyd Mayweather Jr. and former Boston Celtics Star Paul Pierce.
In His ruling, Judge Fitzgerald noted that although the law places restrictions on advertisers, it also requires investors to act reasonably before investing according to the current trends. Kardashian had promoted the Ethereummax and the EMAX cryptocurrency token in a Instagram Post in June 2021. Following this, in October The US Securities And Exchange Commission (SEC) made it official that the reality TV star failed to disclose $250,000 compensation for the promotion of the crypto token on her Instagram account. Mayweather Jr. had also promoted the same token at a boxing match in Miami as well as a large conference on bitcoin. in June 2021.
John Jasnoch, the Attorney representing the Plaintiffs, had submitted to Judge Fitzgerald:
Had The plaintiffs known the truth about the promoters’ financial interests in the tokens, if they had known that they were being paid to market these tokens, they wouldn’t have paid the same amount for them.
Investors had sued the founders of Ethereummax and the celebrity promoters of the crypto project in January after the EMAX cryptocurrency lost 97% of its value. Fitzgerald in his ruling, stated that he will let the plaintiffs’ lawyers refile their lawsuit after amending some claims under different statutes cited in their original filing.
Michael Rhodes, Kardashian’s attorney, commented on the verdict to CNBC:
We We are delighted with the court’s well-reasoned verdict in the case.
What What do you think about the judge’s decision to dismiss the lawsuit? For celebrities who promote a cryptocurrency token? Let Please let us know your thoughts in the comments section.
Images credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This This article is only for informational purposes. It This is not an offer or solicitation to buy or sell or a recommendation of any product, company, or service. Bitcoin.com is not a provider of investment, tax, legal, or accounting advice. Neither Neither the company nor the author are responsible, directly and indirectly, for any damage, loss, or claims that may be caused by, or in connection to, any content, good or service mentioned in this article.
