Kim Kardashian and Floyd Mayweather are among a number of celebrities looking to convince a judge to dismiss attempts to hold them liable for promoting EthereumMax (EMAX) without proper disclosure.
EthereumMax investors filed a class-action lawsuit on the premise that the EthereumMax team collaborated with the celebrities to sell EMAX tokens to investors in what they describe as a “pump-and-dump” scheme.
The initial class action was rejected by the court since the tokens do not have any value apart from what the market is willing to pay.
The celebrities have asked a California federal judge to dismiss a second amended complaint claiming that the renewed allegations push the “same basic theory”.
The defendants wrote: “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 US Securities and Exchange Commission (SEC) has recently issued a warning to celebrities who promote crypto and reminded the stars the law requires them to disclose how much they are getting paid and from whom when promoting investment in securities.
Kardashian has already been fined once because of EthereumMax promotions on social media without disclosing she was paid $250,000 to promote the token, resulting in a $1.26m settlement with the SEC.