CORRECTION (June 7, 2023, 10:31 UTC): Corrects headline and first paragraph to clarify that Kardashian seems likely to win the lawsuit.
Reality TV star Kim Kardashian seems likely to win a lawsuit against her and other celebrities over their endorsement of cryptocurrency platform EthereumMax (EMAX) on Tuesday after a judge tentatively dismissed the case due to insufficient allegations
The plaintiffs alleged in January they suffered damages after following celebrity endorsements by the likes of Kardashian, along with retired boxer Floyd Mayweather Jr. and National Basketball Association Hall of Famer Paul Pierce.
“The court acknowledges that this action raises legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach,” Judge Michael Fitzgerald of the U.S. District Court for the Central District of California, said in a document of the proceeding.
Nevertheless, the judge decided to dismiss the motion, as expected, because the complainant was not able to supply sufficient facts.
“While the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment,” Fitzgerald said in the document.
Kardashian has had to pay $1.26 million to the U.S. Securities and Exchange Commission for not disclosing the $250,000 payment she received for promoting EthereumMax.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.