The reality TV star – Kim Kardashian, the boxing legend – Floyd Mayweather, and other celebrities filed a motion to a California federal judge, asking their renewed EMAX lawsuit to be removed.
The magistrates dropped a similar indictment against the defendants in December last year.
Urging for a Dismissal
Kim Kardashian, Floyd Mayweather, Paul Pierce, Jona Rechnitz, and Giovanni Perone requested the California Central District Court to drop the amended charges, alleging that the celebrities promoted EthereumMax (EMAX) to inflate its price.
“The Court previously found this theory implausible because the tokens have no worth outside of what the market is willing to pay for them in real-time. The Court otherwise dismissed the prior complaint in full due to fundamental flaws. The addition of new claims, defendants, and over 100 pages of largely irrelevant allegations does not cure the defects,” the motion reads.
Investors who lost money due to their involvement with EthereumMax (EMAX) began a legal battle against the famous people last year. They maintained that the celebrities popularized the asset on social media to boost its valuation and later sold it for profit.
The defendants claimed the new case does not differ from the one a federal judge dismissed at the end of 2022. Back then, the magistrates said it could not be guaranteed whether the investors who sued actually saw the promotions on the social platforms.
Kardashian, who has more than 345 million followers on Instagram, supposedly received $250,000 to advertise EMAX on her profile. She agreed to pay $1.26 million in October 2022 to settle the charges.
SEC Targetted Paul Pierce
The US SEC recently accused the NBA Hall of Famer Paul Pierce of illegally promoting the EMAX token on his social media profiles after receiving a $244,000 payment from EthereumMax.
The basketball icon agreed to pay a penalty of over $1.1 million and $240,000 in disgorgement and prejudgment interest without pleading guilty. According to the ruling, he is banned from advertising any crypto asset securities in the next three years.
The watchdog claimed that Pierce posted screenshots of a fake account displaying profits from investing in EMAX. “His own personal holdings were, in fact, much lower than those in the screenshot,” the SEC outlined. Speaking on the lawsuit was Gary Gensler – Chairman of the Commission:
“This case is yet another reminder to celebrities: The law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities, and you can’t lie to investors when you tout a security.”