Defendants involved in the EthereumMax (EMAX) lawsuit are requesting that the California Central District Court dismiss the latest charges brought against them.
In December, U.S. District Judge Michael W. Fitzgerald tossed a class-action lawsuit alleging that reality TV star Kim Kardashian, NBA legend Paul Pierce, boxing champion Floyd Mayweather Jr. and other defendants fraudulently promoted the EthereumMax ERC-20 token.
Following the filing of an amended complaint, the defendants submitted a motion on January 7th urging the court to drop the charges.
They argue that the new allegations do not differ from those in the previously dismissed case that claimed they promoted EMAX to artificially increase its value causing investors to buy the token at an inflated price.
“Court previously found this theory implausible because the Tokens have no worth outside of what the market is willing to pay for them in real time.
The Court otherwise dismissed the prior complaint in full due to fundamental flaws. The addition of new claims, Defendants, and over 100 pages of largely irrelevant allegations does not cure the defects.”
Last week, the U.S. Securities and Exchange Commission (SEC) announced that it filed charges against Pierce for making false and misleading promotional statements about EMAX. The basketball star agreed to settle and pay $1.41 million in penalties, disgorgement and interest.
The regulator also charged Kardashian for a similar offense in October. The media personality agreed to settle the charges and pay the $1.26 million fine.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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