Investors in the controversial EthereumMax (EMAX) token have secured a partial win in their 2022 class-action lawsuit against several celebrity promoters and project insiders. A California federal judge has allowed four state-level lawsuits to move forward while rejecting a broader nationwide class claim.
In a ruling issued Wednesday, Judge Michael Fitzgerald of the U.S. District Court for the Central District of California approved class actions for New York, California, Florida, and New Jersey investors who purchased EMAX between May and June 2021. However, the court found that a nationwide class risked “inappropriate extraterritorial application” of state laws.
Celebrities and Project Figures Named in the Case
The lawsuits target high-profile figures who promoted EMAX, including:
- Kim Kardashian, who advertised the token on Instagram to an audience of up to 200 million followers.
- Floyd Mayweather, boxing legend.
- Paul Pierce, former NBA star.
They are joined by EMAX Holdings, co-founder Giovanni Perone, and alleged consultant Jona Rechnitz.
EthereumMax branded itself as a “culture token” in its white paper. In 2021, it gained rapid attention after A-list endorsements drove prices up more than 116,000% in a week—only to crash over 99%, sparking allegations of a pump-and-dump scheme.
This ruling clears the way for state-level civil trials in four jurisdictions, where plaintiffs aim to prove they were misled by promotional campaigns and false promises.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.