Case Overview

A federal judge in California decided to drop a class action lawsuit against reality TV star Kim Kardashian, boxing champ Floyd Mayweather, and EthereumMax founders. The reason? The court found that the fraud allegations didn’t meet the “heightened pleading standards” for such cases. Ouch! But hold onto your boxing gloves and Instagram posts—plaintiffs have been given a shot to refile if they tweak their legal arguments.

Claims and Controversies

Originally filed by Scott+Scott Attorneys At Law, the plaintiffs argued that celebrities like Kardashian and Mayweather didn’t disclose they pocketed some serious dough for promoting EthereumMax (EMAX). They claimed these stars used “false or misleading statements” to pump up the price of the token like it was a fitness fad. When Kardashian shouted out EMAX in a June 2021 Instagram post, and Mayweather flaunted the EMAX logo during a boxing match, did they just throw caution to the wind?

Judge’s Decision Explained

On December 7, Judge Michael Fitzgerald dismissed the lawsuit. He made it clear that fraud claims need a robust foundation. Even though he sent the lawsuit packing, he acknowledged the weird space where celebrity influence meets the wild world of cryptocurrency. While he noted the issues with celebrity-promoted schemes, he also said investors should do their homework. After all, no one wants to be the person who buys a used car without checking under the hood!

Celebrity Accountability

In his decision, Fitzgerald recognized the unprecedented power of celebrities in today’s digital age. He said, “This action demonstrates that just about anyone with the technical skills and/or connections can mint a new currency and create their own digital market overnight.” Celebrities can influence fans to buy products they probably shouldn’t even touch with a ten-foot pole. It’s like convincing your friend that the new diet soda will change their life—yikes!

What’s Next?

Even though the lawsuit was dismissed, this isn’t the end of the line for investors. Fitzgerald hinted at the opportunity for plaintiffs to refile if certain legal provisions are properly adjusted. Rumor has it, he even mentioned the Racketeer Influenced and Corrupt Organizations Act (RICO)—talk about a plot twist! Meanwhile, Kardashian is no stranger to controversy; just months ago, she settled for $1.26 million with the U.S. Securities and Exchange Commission after failing to disclose her kickback for promoting EthereumMax. Mayweather, on the other hand, has maintained that he never made any specific statements about EMAX. Just another day in the life of a celebrity, right?