Plaintiffs in the EthereumMax (EMAX) investor class action lawsuit have been given a final chance to amend their claims against the celebrities they accuse of promoting the now-defunct cryptocurrency.
In court on October 3 to requestU.S. District Judge Michael Fitzgerald said he was giving EMAX investors a third and final opportunity to file an amended complaint.
The class action lawsuit was filed against boxer Floyd Mayweather, NBA star Paul Pierce, reality TV star Kim Kardashian, and others in 2022 for allegedly promoting EMAX, which the suit called a “pump and dump” scheme.
A judge dismissed the lawsuit last year, but revived it again in June, refusing to dismiss the plaintiff’s claims of “unfair competition” against the celebrities. Four suggestions were dealt with in the new system.
The court denied Mayweather’s motion to dismiss the state’s consumer law claims, finding that the plaintiffs sufficiently alleged the matter was material and Mayweather failed to disclose that he was a paid promoter.
It also denied Pierce’s motion to dismiss the consumer law and state manipulation claims, finding that there were sufficient allegations that Pierce or his agent sold and traded the tokens on his behalf.
The court denied one of EMAX’s co-founder Giovanni Peroni’s motions to dismiss the same consumer claims, but agreed to amend the dismissal of the securities claims to not allege that Peroni personally sold the tokens.
The court said the plaintiffs must refile the complaint and the defendants must respond to the remaining claims, with Judge Fitzgerald writing:
“Plaintiffs have repeatedly failed to address the deficiencies identified by the court and were expressly warned that this would be their last opportunity to amend.”
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According to its whitepaper, Ethereum Max — which has no relation to Ethereum — claims to be a “cultural token” that “bridges the gap between the emergence of community tokens and well-known cryptocurrency base coins.”
In October 2022, the US Securities and Exchange Commission charged Kim Kardashian with illegally promoting the token as a security. She agreed to pay $1.26 million in fines for her involvement.
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