The defendants involved in the EthereumMax (EMAX) lawsuit are asking the U.S. District Court of California to dismiss the latest charges against them.
In December, U.S. District Judge Michael W. Fitzgerald threw out 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.
After filing an amended complaint, the defendants filed a motion on Jan. 7 asking the court to drop the charges.
They argue that the new allegations are no different from those in the previously dismissed case that alleged they promoted EMAX to artificially inflate its value, forcing investors to buy the token at an inflated price.
“The court previously found this theory implausible because Tokens have no value beyond what the market is willing to pay for them in real time.
The Court otherwise dismissed the earlier complaint in its entirety for fundamental defects. Adding new claims, defendants, and over 100 pages of unrelated allegations does not cure the defects.”
Last week, the US Securities and Exchange Commission (SEC) announced that it had filed charges against Pierce for making false and misleading advertising statements about EMAX. The basketball star agreed to settle and pay $1.41 million in penalties, disgorgement and interest.
The regulator also charged Kardashian with a similar offense in October. The media personality agreed to settle the charges and pay a fine of $1.26 million.
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