Judge Finds Kim Kardashian's Posts Misleading in Lawsuit

Reality TV personality Kim Kardashian's plea to dismiss the ongoing lawsuit regarding her involvement in a cryptocurrency-related case was rejected by a United States court. The court believes that Kim, who has gained significant attention for her public persona, is facing allegations of deceiving investors by promoting EthereumMax on her social media platforms without disclosing her financial compensation for the endorsements.

Kim Kardashian's legal team filed a motion urging the court to dismiss the allegations of false advertising linked to her social media content, where she promoted the acceptance of EMAX tokens as payment for table reservations at specific nightclubs. 


However, the court dismissed the request, as the judge determined that the investors had provided sufficient evidence to support the claim that the posts were factually inaccurate. Additionally, it was reported by Bloomberg that the judge deemed one of Kardashian's posts, implying the scarcity of EMAX tokens, as misleading.


In a previous ruling, the Los Angeles court had dismissed the claims, emphasizing numerous flaws within the case. However, in the recent ruling on Tuesday, the judge acknowledged that the investors' attorneys had effectively rectified certain deficiencies in their revised complaint. Nonetheless, the judge issued a cautionary statement, stating that the plaintiffs will be granted a final chance to address any remaining shortcomings in certain claims, or else face permanent dismissal.


In contrast to Kim Kardashian, Floyd Mayweather Jr. managed to evade comparable charges, as the judge concluded that his public remarks regarding the future potential of the EMAX token were primarily inconsequential. However, investors who contend that they paid excessively high prices for the mentioned cryptocurrency will have an opportunity to review and resubmit their claims, alleging that the former boxing champion neglected to disclose his financial compensation for endorsing EMAX.


Regarding the legendary boxer's situation, the judge determined that Mayweather cannot be legally pursued for expressing his personal "belief" regarding the future development of EMAX at a Bitcoin conference in 2021. The judge classified Mayweather's statements as quintessential non-actionable puffery. 


In a separate incident, it was previously disclosed by the US Securities and Exchange Commission that Kim Kardashian had reached a settlement agreement to pay $1.26 million, resolving allegations of violating US regulations by endorsing EMAX tokens. The SEC stated that Kardashian failed to disclose her receipt of $250,000 for posting about the tokens on her Instagram account.

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