Kim Kardashian's Bid To Dismiss EthereumMax Lawsuit Rejected Over 'Literally False' Promotions

Reality TV star Kim Kardashian has failed to convince a judge to dismiss a lawsuit in which she is accused of misleading investors by falsely promoting EthereumMax (EMAX), a cryptocurrency.

What Happened: According to Bloomberg, court documents show that US District Judge Michael Fitzgerald in Los Angeles ruled on Tuesday that Kardashian had falsely hyped the digital tokens through social media posts in which she claimed EMAX would be accepted as payment for table reservations at certain nightclubs.

The judge rejected arguments by Kardashian’s lawyers that he should dismiss the false advertising claims, saying that investors had adequately alleged the posts were “literally false.”

The investors are also suing several EMAX co-founders and consultants in addition to celebrity promoters. 

The judge dismissed the claims in November 2021, stating that there was “a lot wrong with the case.”

See More: A Stay At The Floating Palace From James Bond's ‘Octopussy’

However, he noted in Tuesday’s 84-page ruling that the investors’ lawyers had “artfully cured” some deficiencies in their previous complaint, giving them one more opportunity to address remaining shortcomings in some claims.

Why It Matters:  In October 2021, the Securities and Exchange Commission (SEC) announced that Kardashian had agreed to pay $1.26 million to settle allegations that she broke U.S. rules by promoting EMAX without disclosing that she was paid $250,000 to post on her Instagram account about the token.

 Kardashian settled without admitting or denying the SEC allegations.

Read Next: Bitcoin Regains $27K, Ethereum, Dogecoin Soar Despite SEC Lawsuits Against Binance, Coinbase: Analyst Foresees $42K Move For Apex Crypto