The class-action lawsuit against the American businesswoman for allegedly endorsing a “pump and dump” crypto coin was dismissed after Kim Kardashian’s attorneys filed a joint motion.
A move to dismiss a class-action lawsuit against businesswoman Kim Kardashian and other American celebrities has been submitted by Kim Kardashian’s legal team.
A class-action lawsuit alleging that Kardashian and a few other well-known American social media influencers deceived investors by promoting the cryptocurrency EthereumMax on social media was served on them in January 2022. (EMAX).
In June 2021, Kardashian posted Instagram stories promoting the project. Boxing legend Floyd Mayweather was also named in the case because he advanced the Ethereum-based token before a celebrity boxing match versus YouTuber Logan Paul at the same time.
The token, which skyrocketed after the marketing by Kardashian and other influencers, allowed fans to buy pay-per-view seats. After that, EthereumMax’s value fell dramatically, leaving people with no money.
Kardashian, Mayweather, and eight other people were named in the original court petition that alleged that firm management had worked with celebrity marketers to make false claims about the token and their possession of the majority of tokens. The project’s co-founders were listed as Steve Gentile and Giovanni Perone.
In court documents seen by the Media release, Kardashian’s legal team rebutted the ten allegations against the influencer and argued for rejecting the class-action case. Kardashian’s Instagram stories were an essential item to note:
“Crucially, no named plaintiff alleges that they in fact viewed either Instagram post before purchasing tokens during the relevant time period.”
In addition, the brief noted that the plaintiff’s assertions that influencers were paid in ETH (Ethereum Classic) to promote EMAX were unsupported by any proof that Kardashian had been paid money for her Instagram posts.
The defense team for Kim Kardashian also emphasized that there was no proof that she had ever bought, received, or sold the tokens herself. The defendants have filed a joint request to dismiss the whole class-action lawsuit.
While Kardashian makes an effort to disassociate herself from her role in the EthereumMax scandal, Mayweather has previously been involved in the promotion of dubious cryptocurrency projects.
After endorsing the fake Centra Tech initial coin offering with American music producer DJ Khaled in 2017, the boxer previously avoided legal action. The two were exonerated when a judge determined that investors had failed to provide evidence proving they had purchased tokens as a result of Mayweather and Khaled’s promotional activities.