A federal judge dropped the crypto scam lawsuit against the American media personality and businesswoman – Kim Kardashian.
Numerous investors of EthereumMax (EMAX) started a legal battle against the famous individuals claiming they had used their popularity to inflate the token’s price by promoting it on social media.
- Kim Kardashian, Floyd Mayweather, Paul Pierce, and other celebrities were among the defendants in a lawsuit that dates back to January 2022.
- Investors who lost funds due to their involvement with the EMAX token maintained that the aforementioned people boosted the asset’s valuation by popularizing it on social media and later selling it for profit.
- Kardashian, who has over 335 million followers on Instagram, allegedly received $250,000 to advertise the EMAX token on her profile. In October, she agreed to pay $1.26 million to settle the charges.
- The Central District Court of California recently dismissed the lawsuit against her and the other celebrities, saying it was not certain that the investors who sued actually saw the promotions.
- Judge Michael Fitzgerald said he is aware that celebrities can “persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.” However, he stated that the investors’ claims were insufficiently backed.
“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,” he added.
- Michael Rhodes – Kardashian’s lawyer – said he is “pleased” with the judge’s “well-reasoned decision on the case.”
- John Jasnoch – an attorney for the plaintiffs – stated his clients would not have invested in EMAX should they knew the facts behind the scheme.
- Fitzgerald asserted he would allow the investors’ lawyers to refile the lawsuit after adjusting some of their claims.