EthereumMax (EMAX) investors have secured a partial win in their class-action lawsuit against celebrity promoters and individuals tied to the token. A California judge has granted a motion allowing class-action lawsuits filed in four U.S. states to move forward.

Judge Michael Fitzgerald of the U.S. District Court for the Central District of California made the ruling, which allows cases involving investors who purchased EMAX tokens between May 2021 and June 2021 to proceed in New York, California, Florida, and New Jersey. The judge denied the request for a nationwide class action against EMAX promoters, citing concerns about the inappropriate application of California and Florida law and the risk of individualized questions that would not be suitable for common proof at trial.

The lawsuit targets several high-profile figures who promoted the token, including Kim Kardashian, boxer Floyd Mayweather, and former NBA star Paul Pierce, as well as EMAX Holdings, EMAX co-founder Giovanni Perone, and Jona Rechnitz, who is alleged to be an EMAX consultant, recruiter, and spokesman. The investors allege that these individuals and entities engaged in fraudulent and misleading activities to promote the EMAX token.

The lawsuit alleges that the celebrities readily persuaded millions of followers to invest in a "pump and dump" scheme. Kardashian, for example, promoted the token on her Instagram story, potentially reaching up to 200 million people.

This ruling marks a significant step forward for the investors, who can now pursue civil action against the celebrity promoters at the state level. The attorneys at Scott+Scott, who are representing the investors, plan to vigorously litigate the case. A partner at the firm said that the decision provides a clear roadmap for holding celebrity promoters accountable for misleading promotions of dubious digital assets and that they look forward to bringing the case forward to trial.

The defendants had attempted to dismiss the suit, but the judge has denied those motions. The court had initially dismissed the claim, citing technical issues, but concluded that the attorneys had skillfully rectified the issues of consumer reliance. The court also recognized the increasing frequency of cryptocurrency scams advertised through social media and its relevance in determining the gravity of the harm. The judge also stated that there were winners and losers in the EMAX charade and that the celebrities unfairly profited off the exploitation of their fans by endorsing unvetted products without disclosing that they were being paid to do so.