- A U.S. district judge has criticized the class action lawsuit against EthereumMax promoters
- Judge Michael Fitzgerald accused the plaintiffs’ lawyers of “trying to act like” the SEC
- Kim Kardashian, Floyd Mayweather Jr, and Paul Pierce are accused of illegally promoting the EMX token in 2021
The celebrity promoters associated with the EthereumMax cryptocurrency have been given a boost in their class action lawsuit after a judge criticized the merits of the case. In a hearing reported by Bloomberg yesterday, U.S. District Judge Michael Fitzgerald criticized the lawyers representing a group of traders for “trying to act like” the U.S. Securities and Exchange Commission (SEC), and added that there was “just a lot that is wrong” with the case, suggesting that the promoters, and the project’s founders Steve Gentile and Giovanni Perone, might get off.
Buyers Felt Duped by Promoters
The lawsuit was started by a group of individuals who in 2021 lost their investments buying the EMAX token on the back of the recommendations by the likes of Kim Kardashian, Floyd Mayweather Jr, and Paul Pierce, all of whom are defendants in the case. None of the defendants publicized the fact that they were being paid to promote the token, leaving buyers assuming they genuinely believed in the token.
Judge Fitzfgerald wasn’t exactly enamored with their arguments or the conduct of their counsel, arguing that the firm representing the investors was acting like the SEC but “haven’t chosen to view the tokens as a security”, given that they didn’t invoke a standard securities fraud claim in their case.
“A Lot” Wrong With Case
Rather than arguing this, the plaintiffs have instead argued that they wouldn’t have paid as much for the EMAX tokens as they did, had they known that the celebrities were being paid to promote them. However, this argument appears to have fallen flat, with the judge also opining that, “It seems here that there is just a lot that is wrong with this case,” which doesn’t bode well for the plaintiffs.
Kardashian settled the case with the actual SEC for $1.26 million last month, while Mayweather is continuing to fight his corner. Paul Pierce’s position is not known.
A written verdict is expected soon.
