Crypto Lawsuit Against Kim Kardashian and Floyd Mayweather Jr. Dismissed in California CourtThe celeb promoters were potentially on the hook for a big class-action settlement.

Sincecrypto winterbegan in the summer of 2022, celebrities have learned some hard lessons about the dangers of shilling new products. Several, including金正日Kardashian and Floyd Mayweather Jr., managed to avoid court-ordered payouts after a California judge dismissed the lawsuit against them, concluding that investors were unaware of the celebs' promotional efforts.

In January, a lawsuit was filed claiming thatEthereumMaxexecutives and celebrity promoters took part in a scheme meant to induce investor purchases of EMax tokens — an action that drove up thecryptocurrency's price, netting significant profits once the celebs and execs sold their holdings.

Here's more from CNN:

US District Judge Michael Fitzgerald in Los Angeles said that the investors may amend and refile their proposed class action.

The decision comes as othercelebrity promoters face lawsuitsfrom users of the failed cryptocurrency exchange FTX, whose collapse has deepened an ongoing "crypto winter."

Attorney Sean Masson represented the plaintiffs in the EthereumMax suit. He indicated plans to change investors' claims by adding "additional facts demonstrating defendants' wrongdoing and liability."

CNN also quoted Kim Kardashian's attorney Michael Rhodes, who had no complaints, saying reps for the celebs were happy with what he termed "the court's well-reasoned ruling."

Judge Michael Fitzgerald explained his dismissal by stating that the plaintiffs could not prove any intention to mislead investors. Additionally, investors didn't say whether they'd seen the promotions, such as Mayweather sporting an EthereumMax logo on his trunks in the ring or Kardashian's Instagram posts.

The claim was permanently dismissed. According to Judge Fitzgerald, the California statute protects consumers regarding fraud related to real-world products or services —cryptocurrencyis consideredintangible. However, aggrieved investors may still get their day in court, as they can file suit again once they've revised their claims.