Kim Kardashian, Floyd Mayweather File Motion to Dismiss EMAX Crypto Investors’ Lawsuit

News | February 24, 2023 By:

On Tuesday, February 21, 2023, Reality TV star Kim Kardashian, former professional boxer Floyd Mayweather, former NBA player Paul Pierce and other celebrities asked the United States District Court for the Central District of California to dismiss a second amended complaint filed by EthereumMax (EMAX) investors.

EMAX was touted as a “culture token,” whereby token holders would have special access to outstanding restaurants and clubs as well as casino games on the EthereumMax website.

On January 7, 2022, the first lawsuit was filed alleging that Kardashian, Mayweather, and Pierce conspired with the founders of the cryptocurrency to plan a pump-and-dump scheme to get investors to buy EMAX tokens using their endorsements. The plaintiffs argued that the celebrities failed to disclose that they were being paid to promote EMAX.

In a June 2021 Instagram post, Kardashian endorsed EMAX, and the same month, Mayweather competed against YouTube personality Logan Paul while sporting the EMAX logo on his boxing trunks.

On December 7, 2022, Michael Fitzgerald, a United States district judge of the United States District Court for the Central District of California, dismissed the lawsuit stating that he recognized that the lawsuit’s claims raised legitimate worries about “celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach. “But, while the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.” Judge Fitzgerald also said that the investors may amend and refile their proposed class action.

After the dismissal, the plaintiffs filed an amended complaint claiming that the celebrities misleadingly promoted the EMAX cryptocurrency.

Earlier this week, the defendants filed a motion to dismiss the amended complaint arguing that the new lawsuit holds the same theory that was dismissed initially.

“The Court otherwise dismissed the prior complaint in full due to fundamental flaws,” the motion said. “The addition of new claims, Defendants, and over 100 pages of largely irrelevant allegations does not cure the defects.”

The motion also argues that “while all plaintiffs now allege holding onto Tokens due to alleged misrepresentations, Plaintiffs suffered no injury from merely holding onto Tokens that have no inherent value.”

“The amount of irrelevant matter in this latest complaint underscores that Plaintiffs are desperately trying to mask insufficient claims with shotgun pleading,” the motion said. “Further amendment to the State Consumer Law and California common law claims – which have already been dismissed once — is futile and dismissal with prejudice is warranted.”

A copy of the filing can be found here.