Celebrities asked to dismiss second amended complaint in class-action lawsuit
Rebeca Moen Feb 26, 2023 09:29
Kim Kardashian, Floyd Mayweather, and others claim investors "suffered no damage from just hanging onto the tokens" in their dismissal request.
Kim Kardashian, Floyd Mayweather, and a number of other celebrities are attempting to persuade a court to reject an additional effort to hold them accountable for allegedly promoting EthereumMax (EMAX) without providing the appropriate information.
A second amended case from EthereumMax investors was filed in December 2022, and the celebrities urged a federal court in California to dismiss the complaint as frivolous. The defendants claim that the newly raised claims are an advancement of the "same fundamental notion" that the court had previously rejected.
The investors' class-action complaint is based on the idea that the EthereumMax team collaborated with celebrities in order to engage in a scam that they refer to as a "pump-and-dump" scheme when it came to the sale of EMAX tokens to investors.
However, the defendant's motion to dismiss the renewed complaint argues that the theory revolving around celebrities advertising the EMAX tokens to pump its price artificially was already rejected by the court due to the fact that the tokens do not have any value other than what the market is willing to pay for. The court stated that the theory was rejected because the tokens do not have any value other than what the market is willing to pay for. They penned the following in their paper: "The Court otherwise rejected the preceding complaint in its entirety due to basic deficiencies." The remedy cannot be found in the inclusion of additional claims, defendants, or more than a hundred pages of accusations that are mostly unrelated to the situation.
In addition, the motion makes the suggestion that the investors' current belief is that they maintained ownership of EMAX owing to the misrepresentations made by the celebrities. On the other hand, the investors "suffered no damage by just holding onto the tokens," according to the argument that supports the move to dismiss the case.
While this is going on, Kardashian has already been penalized once for promoting EthereumMax on her various social media platforms. After failing to disclose that she received a payment of $250,000 to promote the cryptocurrency project, the United States Securities and Exchange Commission (SEC) and the American socialite reached a settlement agreement on October 3, 2022 that was worth $1.26 million. The agreement was reached on October 3.
The Securities and Exchange Commission (SEC) has just just issued a warning to celebrities who advocate cryptocurrency. When encouraging investment in stocks, celebrities are required by law to reveal how much money they are being paid and from whom it is coming, as was pointed out by the Securities and Exchange Commission on February 17th.
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