JENNER Token Lawsuit Dismissed, Buyers Regroup

Caitlyn Jenner memecoin buyers are regrouping after a judge dismissed their lawsuit against the former Olympian. The lawsuit, which was filed in November, accused Jenner and her manager, Sophia Hutchins, of fraudulently soliciting financially unsophisticated investors to buy the JENNER token, which the plaintiffs alleged was an unregistered security. The court, however, found that the claims of securities law violations couldn't stand as it wasn't alleged that the purchases took place in the US, as required by law. Additionally, the court found that the complaint lacked sufficient details about the purchases and failed to allege that Jenner sold the token through a prospectus that contained an untrue statement.

The court also dismissed a common-law fraud accusation, stating that the complaint alleged omitted information and noted various social media posts by Jenner stating that she would continue to support the tokens, but it did not identify which of the statements related to the fraud claim. The group also accused Hutchins of aiding and abetting Jenner’s allegedly fraudulent conduct, but the judge said that claim failed as the complaint “does not adequately allege any viable fraud claim.”

Judge Stanley Blumenfeld Jr. allowed the class group to amend its suit, which must be filed by May 23, but warned it had “to be more focused and judiciously pleaded” than the original. A lawyer for the class group, Jack Fitzgerald, expressed satisfaction with the court's decision, stating that they intend to amend and press forward with the case. The court also noted that the determination of whether the tokens are securities is fact-dependent and may be affected by an amended pleading, and therefore declined to resolve that issue at this stage.

The JENNER token was first launched in May 2024 via Pump.fun on the Solana blockchain but was soon embroiled in controversy after Jenner and other memecoin launching celebrities claimed collaborator Sahil Arora scammed them. Jenner relaunched the token on Ethereum, which the class group claimed tanked the value of the original Solana token, but gave Jenner the benefit of collecting a 3% fee on every transaction. The token has lost essentially all its value since launch, with its market value crashing to around $58,775 from a June 3 peak of nearly $7.5 million.