Kim Kardashian and Floyd Mayweather win suit over EthereumMax promotion

A U.S. court dismissed the lawsuit brought by investors in the EthereumMax altcoin (EMAX) against model Kim Kardashian and former professional boxer Floyd Mayweather. Reuters reports.

In the complaint filed in January the plaintiffs alleged that they paid “excessive prices” for the digital asset, as the stars promoted the token. The defendant in the case was also former Boston Celtics forward Paul Pierce.

U.S. District Judge in Los Angeles Michael Fitzgerald noted in the ruling that the investors failed to prove the promoters’ bad faith and did not indicate when they saw the advertising.

According to him, the plaintiffs may refile the class action. Their attorney Sean Masson said he planned to revise the complaint and “supplement it with facts of violations.”

The Ethereum-based altcoin drew broad attention in late spring 2021. On May 26, Pierce posted a promotional post on his Twitter — within days the price of EMAX reached a peak, after which it fell by more than 80% in 11 days.

In June Mayweather appeared wearing an EthereumMax-logo T-shirt at weigh-ins and a face-off against blogger Logan Paul. In mid-June EMAX rose again, coinciding with Kardashian’s Instagram story posts. After that the coin tumbled — from its peak the price had fallen 99.7% (CoinGecko).

In August Kardashian’s lawyers filed a motion to dismiss the suit. The defense argued that there was no proof that her posts specifically prompted investors to buy the tokens.

Earlier in October, the U.S. Securities and Exchange Commission announced that it had settled with Kardashian over allegations of securities-law violations in promoting EMAX. The star agreed to pay $1.26 million in penalties, interest and disgorgement of ill-gotten gains.

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