In the ongoing legal crypto scam case, Kim Kardashian’s attempt to dismiss the ongoing lawsuit has been rejected by the United States court. The reality TV star is facing accusations of misleading investors by promoting EthereumMax on her social media platforms without disclosing her financial compensation for the endorsements.
Kim Kardashian’s legal team sought the court’s dismissal of false advertising allegations regarding her social media posts, where she promoted EMAX tokens for payment at specific nightclubs.
However, the court denied the request, ruling that the investors’ claims of the post being “literally false” were valid. Additionally, a Kardashian post implying the scarcity of EMAX tokens was found to be misleading by the judge, as reported by Bloomberg.
After initially dismissing the claims and expressing concerns about the case, the Los Angeles court has now acknowledged that the lawyers representing the investors have made improvements in their complaints. However, the judge emphasized that will be the final chance for the remaining shortcomings in certain claims to be addressed. Failure to be so could result in permanent dismissal of those claims.
While Kim Kardashian faced legal challenges, Floyd Mayweather Jr. managed to evade similar charges as the judge deemed his statements about the growth potential of the EMAX token to be largely innocuous. However, investors who assert that they paid elevated prices for the cryptocurrency will have an opportunity to amend and resubmit their allegations, alleging that the former boxing champion neglected to disclose his financial compensation for promoting EMAX.
The judge’s ruling in the legendary boxer’s case stated that Mayweather cannot be held liable for expressing his “belief” in the future growth of EMAX during a Bitcoin conference in 2021, as it falls under the category of “non-actionable puffery.”
On a separate note, the US Securities and Exchange Commission recently disclosed that Kim Kardashian reached a settlement agreement, agreeing to pay $1.26 million to resolve allegations of violating US regulations by promoting EMAX tokens. The SEC stated that Kardashian failed to disclose receiving $250,000 in compensation for posting about the tokens on her Instagram account.
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