Benzinga - Kim Kardashian, Floyd Mayweather and other well-known celebrities are vying to convince a judge to dismiss a lawsuit alleging they failed to properly disclose their advocacy of EthereumMax (EMAX).
What Happened: The investors' class action lawsuit alleges that the EthereumMax team and various celebrities worked in concert to falsely promote EMAX tokens, thereby creating an artificial demand that ultimately resulted in a "pump-and-dump" scheme for investors.
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The defendants' motion to dismiss the renewed complaint argues that the theory of celebrities artificially boosting the price of EMAX tokens by advertising them fails for a simple reason: the tokens have no value other than what the market is willing to pay for them.
Celebrities in the filing wrote, “The Court otherwise dismissed the prior complaint in full due to fundamental flaws. The addition of new claims, defendants, and over 100 pages of largely irrelevant allegations does not cure the defects.”
Kardashian has already been penalized for her involvement in the promotion of EthereumMax on social media. On Oct. 3, the Securities and Exchange Commission (SEC) imposed a $1.26 million settlement for failing to disclose that she had been paid $250,000 for her promotional efforts.
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