EthereumMax Lawsuit Proceeds in Four States After Partial Legal Victory

Investors in EthereumMax (EMAX) have secured a partial legal victory in a class-action lawsuit targeting prominent figures and individuals associated with the EMAX token, following a recent ruling by a California federal judge. The decision allows four state-level lawsuits—filed in New York, California, Florida, and New Jersey—to proceed against those who promoted the token between May and June 2021. However, the judge denied the plaintiffs’ request to certify a nationwide class action [1].

The ruling by Judge Michael Fitzgerald in the U.S. District Court for the Central District of California noted that plaintiffs had met the procedural requirements for forming state-level subclasses. The judge, however, expressed concerns about the potential extraterritorial application of California and Florida law and the existence of questions that could not be resolved through common evidence in a national class [1].

The lawsuit includes claims against celebrities such as Kim Kardashian, Floyd Mayweather, and Paul Pierce, who promoted EMAX in 2021. The token allegedly experienced a dramatic price surge of over 116,000% within a week before plummeting by more than 99%, leaving many investors with significant losses. The legal action also targets EMAX co-founder Giovanni Perone, EMAX Holdings, and Jona Rechnitz, described as a “consultant, recruiter, and spokesman” for the token [1].

This is not the first time the case has moved through the courts. In December 2022, Fitzgerald initially dismissed the lawsuit, arguing that investors should have exercised due diligence before investing in EMAX. However, he permitted the plaintiffs to refile, which they did approximately seven months later [1].

Separately, Kardashian reached a $1.2 million settlement with the U.S. Securities and Exchange Commission (SEC) in October 2022 for failing to disclose a $250,000 payment in exchange for promoting EMAX on her Instagram story [1].

The legal developments come amid broader scrutiny of celebrity endorsements in the cryptocurrency space. The EMAX case adds to a growing list of high-profile legal actions involving tokens that have drawn criticism for their volatile performance and marketing tactics.

The ruling marks a critical step for the plaintiffs, who now face the next phase of legal proceedings in the four designated states. Whether the lawsuits ultimately result in significant financial redress for investors remains to be seen. Nonetheless, the partial approval of the class-action effort highlights the increasing willingness of courts to entertain claims against individuals and entities involved in digital asset promotions.

Source:

[1] Cointelegraph, [https://cointelegraph.com/news/ethereummax-class-action-lawsuit-celebrities](https://cointelegraph.com/news/ethereummax-class-action-lawsuit-celebrities)

[2] Law360, [https://www.law360.com/classaction](https://www.law360.com/classaction)

[3] Law360, [https://www.law360.com/securities](https://www.law360.com/securities)