After receiving a more in-depth complaint, a California judge reversed his first decision to reject the claims against the reality TV star.
On Tuesday, a California court ordered that Kim Kardashian and other celebrities might be tried for their fake endorsements of the EthereumMax (EMAX) cryptocurrency on social media.
Investors filed a lawsuit against Kardashian and other high-profile figures, including Floyd Mayweather Jr. and NBA legend Paul Pierce, who are both in the Hall of Fame. Digital assets associated with EMAX tokens, which are constructed on the Ethereum blockchain but are unrelated to the second-largest cryptocurrency by market size, were promoted by celebrities, and they were accused of deceiving investors.
Judge Michael Fitzgerald of the District Court leaned towards dismissing the claims against Kardashian in a provisional judgement from December. Still, on Tuesday, he refused her move to dismiss an additional lawsuit.
A June 2022 post by Kardashian was “misleading as it falsely suggested the EMAX tokens were scarce,” and a May 2022 post “were false,” as charged in the amended suit.
Similar motions by Pierce and Mayweather were both partially granted, with the latter being based on the fact that Mayweather’s assertions about EMAX at the Bitcoin 2021 conference were primarily expressions of belief.
Several securities allegations that the plaintiffs included in their modified complaint were also blocked by Judge Fitzgerald, who granted dismissals for “lack of specificity but not for lack of privity,” with the chance to amend.
For promoting EMAX to her massive Instagram following, Kardashian was fined $1.2 million in October by the U.S. Securities and Exchange Commission.
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