Investors who went to a trial in 2022 can be closer to the continuation of legal action against celebrities who promoted the Ethereummax (EMAX) token after a recent decision by a California judge.
In a Wednesday file before the American district court for the California central district, judge Michael Fitzgerald granted a request authorizing the collective appeals filed in four American states to move forward, but rejected the national class request against EMAM promoters. The order will allow cases involving investors who bought Emax between May 2021 and June 2021 to continue in New York, California, Florida and New Jersey.
“The applicants have shown that the proposed state classes behave with the requirements of the federal civil procedure rules,” said Wednesday. “However, the risk of inappropriate extraterritorial application of the law of California and Florida is simply too high with regard to the proposed national class, as is the risk of individualized questions which are not likely to be common proof at the trial.”
The decision will allow civil action at the state level against celebrity Kim Kardashian, the boxer Floyd Mayweather and the former NBA star Paul Pierce, who have all promoted the token, as well as individuals and entities involved in its creation, notably Emax Holdings, the co-founder Emax Giovanni Perona and the alleged approval “Consultant and Spokèle Jona “Jona. Kardashian promoted the token on his Instagram history, potentially reaching up to 200 million people in 2021.
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Back to 2021, and what led to the Emax trial
Ethereummax, whose white paper describes it as a “culture token”, noted the attention of many members of the cryptographic industry in 2021 after the approvals of certain celebrities on list A, including Kardashian. Many allegedly alleged that the project was a “pump and discharge” program after the price had jumped more than 116,000% in a week, then dropped by more than 99%, leaving many investors holding the bag.
Although Fitzgerald initially rejected the collective appeal in December 2022, declaring at the time that the buyers of the token were to exercise a reasonable diligence before investing, he left the door open to refer. They made about seven months later, in the same district, to be supervised by the same judge.
In addition, Kardashian reached a regulation of $ 1.2 million with the American securities commission and the exchange in October 2022 for having failed to disclose a payment of $ 250,000 to promote Emax.
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