Kim Kardashian, Floyd Mayweather and other celebrities are trying to convince a judge to throw out another revision attempt to hold them accountable for allegedly promoting EthereumMax (EMAX) without proper disclosure.
The celebrity asked a California federal judge to dismiss a second amended complaint from EthereumMax investors filed in December. According to the defendants, the renewed charges push “the same basic theory” that the court had previously rejected.
Looks like Floyd rockin’ with it $eMax wow #EMAX #Ethereummax #Ethereum pic.twitter.com/TB9wNLwCcb
— Breezy Gambino (@BreezyGambino1) June 4, 2021
The investor class action lawsuit is based on the premise that the EthereumMax team worked with celebrities to sell EMAX tokens to investors in what they describe as a “pump-and-dump” scheme.
However, the defendant’s motion to dismiss the updated complaint saying that the theory surrounding celebrities advertising EMAX tokens to artificially pump up the price has been rejected by the court because the tokens have no value other than what the market wants. for. He wrote:
“Other courts have dismissed the previous complaint in its entirety due to fundamental defects. The addition of new claims, Defendants, and over 100 pages of largely irrelevant allegations do not cure these defects.
In addition, the move shows that the new theory of the investors is that they are holding EMAX because of the misrepresentation of the celebrities. However, the motion to dismiss states that investors “do not suffer from simply holding tokens.”
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Meanwhile, Kardashian has been fined once for promoting EthereumMax on social media. On October 3, the American socialite reached a $1.26 million settlement with the United States Securities and Exchange Commission (SEC) after failing to disclose that she received a $250,000 payment to promote a crypto project.
Meanwhile, the SEC recently issued a warning to celebrities promoting crypto. On February 17, the SEC warned the stars that the law required them to disclose how much they were paid and from whom when promoting their investment in securities.