Kim Kardashian Wins Investor Lawsuit Over EthereumMax
Reality TV star Kim Kardashian won a lawsuit against her and other celebrities over their endorsement of cryptocurrency platform EthereumMax (EMAX) on Tuesday after a judge dismissed the case due to the fact that the allegations were insufficient.
The plaintiffs alleged in January that they suffered damages after following celebrity endorsements by the likes of Kardashian, along with retired boxer Floyd Mayweather Jr. and National Basketball Association Hall of Famer Paul Pierce.
“The court acknowledges that this action raises legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach,” Judge at the United States District Court Central District of California, Michael Fitzgerald said in a document of the proceeding.
Nevertheless, the judge decided to dismiss the motion, as expected, because the complaint was not able to supply sufficient facts.
“While the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment,” Fitzgerald said in the document.
Kardashian has had to pay $1.26 million to the U.S. Securities and Exchange Commission for not disclosing the $250,000 payment she received for promoting EthereumMax.