Emax Class Action Against Kim K and Mayweather
A judge has recently ruled that a class action lawsuit against Kim Kardashian and Floyd Mayweather can proceed, after the two celebrities had promoted an initial coin offering (ICO) for the now-defunct Emax cryptocurrency.
The lawsuit, which was filed in 2018, alleges that the two celebrities misled investors by failing to disclose that they were being paid to promote the ICO. The lawsuit also accuses the two of failing to disclose that the Emax cryptocurrency was a security, which would have been subject to federal securities laws.
The lawsuit seeks to recover losses suffered by investors due to the alleged misconduct. If the lawsuit is successful, it could set a precedent for other celebrities who have promoted ICOs without disclosing that they were being paid.
The judge’s ruling is a major victory for investors who were misled by the two celebrities. It remains to be seen whether the lawsuit will be successful in recovering losses for investors, but the ruling is a step in the right direction.
The Emax ICO was launched in 2017 by three companies, Centra Tech, Sohrab Sharma, and Robert Farkas, and was promoted by Kim Kardashian and Floyd Mayweather. The ICO raised $32 million from investors, however, the project was later shut down by the US Securities and Exchange Commission (SEC) for fraud.
The SEC alleged that the companies had misled investors by claiming that the ICO would be backed by Visa and Mastercard, when in fact it was not. Furthermore, the SEC claimed that the companies had used the funds raised from the ICO for personal gain.
The case against Centra Tech, Sohrab Sharma, and Robert Farkas was dismissed in 2019, but the case against Kim Kardashian and Floyd Mayweather was recently reinstated by a judge. The judge ruled that the two celebrities had promoted the ICO without disclosing their financial interests in the project.
Class Action Lawsuit
The class action lawsuit was filed by investors in 2018, claiming that the two celebrities had violated US securities laws by promoting the ICO without disclosing that they had been paid to do so.
The lawsuit was initially dismissed, but the judge has now ruled that the case can proceed.
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