Whistleblowers in the EthereumMax (EMAX) investor class action lawsuit have been given one last chance to amend their claims against celebrities they accuse of promoting the now-defunct cryptocurrency.
In a order In a court hearing on Oct. 3, U.S. District Court Judge Michael Fitzgerald said he is giving EMAX investors a third and final chance to file an amended complaint.
The class-action lawsuit was filed in 2022 against boxer Floyd Mayweather, NBA star Paul Pierce, reality star Kim Kardashian and others, accusing them of allegedly promoting EMAX, which the lawsuit called a “buying and selling” scheme. “.
The judge dismissed the lawsuit last year, but revived it again in June by refusing to dismiss the plaintiffs’ “unfair competition” claims against the celebrities. Four motions were addressed in the new order.
Excerpt from Judge Fitzgerald’s order explaining the motions that were presented to the court. Source: CourtListener
The court denied Mayweather’s request to dismiss the state’s consumer protection law claims, finding that the plaintiffs sufficiently alleged materiality and Mayweather’s failure to disclose that he was a paid promoter.
It also denied Pierce’s request to dismiss the state’s consumer protection law claims and tampering claim, finding that it was sufficiently alleged that Pierce or his agent sold and traded tokens for his benefit.
The court denied one of EMAX co-founder Giovanni Perone’s requests to dismiss the same consumer claims, but granted to amend the dismissal of the securities claims for failing to allege that Perone personally sold tokens.
The court said the plaintiffs must refile the complaint and the defendants must respond to the remaining claims, and Justice Fitzgerald wrote:
“Plaintiffs have repeatedly failed to correct the deficiencies identified by the court and were explicitly warned that this would be their last opportunity to amend.”
According to its whitepaper, EthereumMax, which is not related to Ethereum, claimed to be a “cultural token” that “bridges the gap between the emergence of community tokens and the well-known founding coins of cryptocurrencies.”
In October 2022, the United States Securities and Exchange Commission charged Kim Kardashian with illegally promoting the token as a security. She agreed to pay $1.26 million in fines for her participation.
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2023-10-06 11:51:39
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