Reality TV star Kim Kardashian and other public figures have been accused of misleading investors through the promotion of digital assets tied to EthereumMax (EMAX) tokens, a California judge ruled on Tuesday. The judge denied a motion to dismiss an amended complaint against Kardashian, retired boxer Floyd Mayweather Jr. and National Basketball Association Hall of Famer Paul Pierce, allowing the case to move forward.
The plaintiffs had adequately alleged that Kardashian’s social media posts from May 2022 were false and a June post was misleading as it falsely suggested the EMAX tokens were scarce, according to the document. The judge also ruled in favor of blocking several securities claims added to the plaintiffs’ amended complaint, granting the dismissals for a lack of specificity but not for lack of privity, with possibility to amend.
In October, Kardashian was fined $1.2 million by the U.S. Securities and Exchange Commission for shilling EMAX to her millions of Instagram followers. The plaintiffs have one last chance to amend their complaint until June 26.