Kim Kardashian and Floyd Mayweather, along with other celebrities, have filed a motion to dismiss another attempt to hold them accountable for allegedly promoting EthereumMax (EMAX) without proper disclosure. The motion was filed in response to a renewed complaint filed by EMAX investors in December 2022.
The investors’ class-action lawsuit claims that the EthereumMax team worked with the celebrities to sell EMAX tokens to investors in a “pump-and-dump” scheme.
However, the defendants argue that the renewed complaint pushes the “same basic theory” that the court had previously dismissed.
According to the motion to dismiss, the tokens have no value apart from what the market is willing to pay for them, and the court had already rejected the theory that celebrities advertised EMAX tokens to pump their price.
The motion states that the addition of new claims, defendants, and allegations that are largely irrelevant does not cure the defects of the prior complaint that were dismissed in full.
The motion further argues that the investors’ new theory is that they held onto EMAX due to misrepresentations from the celebrities, but they suffered no injury from merely holding onto the tokens. The motion suggests that the investors may have suffered financial loss if they sold their tokens at a lower price than what they paid for them.
Kim Kardashian has already been fined once due to EthereumMax promotions on social media. In October 2022, she reached a $1.26 million settlement with the United States Securities and Exchange Commission (SEC) after failing to disclose that she received a $250,000 payment to promote the crypto project.